The Biden administration announced on Thursday that it plans to require airlines to provide cash compensation and cover the costs of lodging and meals for passengers affected by cancellations or significant changes initiated by the airlines.
This proposed rule would exceed the existing mandate for airlines to merely refund ticket costs, aligning U.S. regulations more closely with European consumer protection standards in the aviation sector.
However, with only a few weeks left before President Joe Biden transitions out of office, the implementation of such regulations will ultimately be decided by the incoming administration of President-elect Donald Trump.
The airline industry group, Airlines for America, expressed concerns that the Biden administration’s initiative could lead to increased ticket prices.
They stated, “In this highly competitive industry, carriers don’t need more motivation to deliver high-quality service.
This proposal is just another in a series of poorly thought-out and hastily put together regulations from an administration eager to reintroduce government oversight into the U.S. airline industry.”
In response, the Department of Transportation indicated it seeks public feedback on a requirement for airlines to offer cash compensation, especially in cases of cancellations linked to mechanical failures or outages in airline systems.
Transportation Secretary Pete Buttigieg highlighted the need for fresh passenger protections as air travel experiences unprecedented demand rates.
The Transportation Department operates an online “dashboard” that showcases airlines’ commitments to customer service when issues like cancellations or significant delays occur due to their fault.
Yet, passengers typically need to seek assistance directly at the airport, and the commitments from airlines lack the enforceability of federal regulations.
The proposed guidelines may include cash compensation that would range from $200 to $775, specifically targeting substantial delays.
Furthermore, the agency is contemplating a tiered compensation structure that would differentiate between smaller and larger airlines.
The plan is expected to also facilitate free rebooking on the next available flight, along with meal allowances and accommodation for passengers stranded due to flight disruptions.
The administration will be actively seeking public input on how to appropriately classify cancellations or delays that are attributed to airline operations versus those outside of their control.
