The Department of Transportation (DOT) is exploring new regulations that could mandate airlines to compensate passengers when flights are significantly delayed or canceled due to airline-related issues. This proposed rule aims to enhance passenger rights and ensure that airlines are held accountable for disruptions within their control.
Transportation Secretary Pete Buttigieg emphasized the need for these protections, stating, “Americans understand the critical role of a thriving airline industry, and U.S. taxpayers supported airlines during the COVID-19 crisis. Now, with air travel rebounding, it’s imperative to strengthen passenger protections. This initiative marks another step towards a better era for air travel, where passengers are adequately protected and not expected to shoulder the financial burden of airline-caused disruptions.”
Under the DOT’s proposal, passengers could be entitled to receive monetary compensation, ranging from $200 to $775, based on the duration of the delay and the circumstances surrounding it. This compensation would be applicable when the delay or cancellation is attributable to the airline, such as mechanical problems, staffing shortages, or IT system failures.
Here’s a breakdown of the proposed compensation structure for domestic flights, as outlined in the DOT’s notice:
- $200-$300: For delays of 3 to 6 hours.
- $375-$525: For delays of 6 to 9 hours.
- $750-$775: For delays of 9 hours or more.
It’s important to note that this compensation requirement would only apply when the airline is deemed fully or partially responsible for the disruption.
Transportation Secretary Pete Buttigieg discussing new passenger protection rules regarding airline accountability for flight disruptions and wheelchair handling, aiming to improve air travel experience.
In addition to compensation, the proposed rule would mandate airlines to broaden their rebooking policies. Currently, not all airlines rebook passengers on competitor airlines when significant delays or cancellations occur. The DOT’s proposal seeks to change this, requiring airlines to rebook passengers on other airlines if a domestic flight is delayed by more than three hours, or an international flight by more than six hours, or if the flight is canceled altogether. Furthermore, the rule would officially require all airlines to rebook passengers on the next available flight at no additional cost, which is already a common practice within the industry.
The DOT is also proposing that airlines should cover necessary expenses for passengers affected by delays or cancellations that result in an unexpected overnight stay. This would include costs for food, accommodation, and ground transportation to and from lodging.
While such compensation mandates are already in place in Europe, Airlines for America (A4A), a trade organization representing major U.S. airlines, argues against the effectiveness of such regulations. A4A suggests that the competitive nature of the airline industry itself is sufficient motivation for airlines to provide quality service.
“Airlines’ fundamental business model relies on customer satisfaction and repeat business. In this fiercely competitive market, carriers are already highly incentivized to ensure a positive customer experience,” A4A stated. They further commented on the European model, stating, “Analysis of the European system, which the DOT is attempting to mirror, indicates that government-mandated extra compensation unnecessarily inflates airfare costs while negatively impacting operational efficiency.”
The DOT has opened a 60-day period for public comment on these proposed passenger protection rules. This feedback will be crucial in shaping the final regulations regarding airline compensation for flight cancellations and significant delays.
