Airline passengers would receive payments for major delays under rules considered by Biden administration

The Biden administration is considering new rules that would require airlines to pay passengers for significant delays within an airline’s control.

The U.S. Department of Transportation on Thursday launched a rulemaking process, billed as a measure to “protect passengers stranded by airlines,” that is now open to public comment.

It seeks to set basic standards for what airlines must offer passengers if there are disruptions, including a cancellation or extended delay due to airline-related circumstances such as a mechanical problem or IT system failure.

The proposed rules include requiring airlines to compensate passengers for delays on a tiered scale: $200 to $300 for domestic delays of at least three hours, $375 to $525 for delays of at least six hours, and $750 to $775 for delays of at least nine hours. .

The department is also considering whether small airlines should pay less than large airlines and whether compensation should be required if a passenger is notified one or two weeks before a cancellation or significant delay.

Other proposals include requiring airlines to rebook passengers at no additional cost on the next available flight, covering meals, lodging and related transportation expenses for stranded passengers.

The public has 60 days to offer comments.

It comes as more than 60% of domestic flight delays of three hours or more were “airline-caused” in 2022 and 2023, according to airline data submitted to the DOT.

Additionally, the Congressional Government Accountability Office found that flight cancellations between July 2021 and April 2022 potentially affected more than 15 million passengers and delays potentially affected more than 116 million people.

The press release noted that the UK, EU, Canada and Brazil have consumer protections in place to compensate passengers and provide services in the event of significant delays.

“a study “We found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays,” the DOT said in a news release.

At the moment, Airlines must refund passengers for canceled flights.but there are no established mandates for delays. Several airlines must provide at least $50 in credits or vouchers for disruptions, the DOT said.

The DOT noted that 10 major U.S. airlines have already committed to rebooking stranded passengers at no additional cost and covering meals during airline-caused disruptions, and nine have committed to providing lodging and related transportation expenses. .

“However, airlines may change course on their customer service commitments at their discretion, and it is often up to airlines to determine when they are responsible for a flight delay or cancellation,” the DOT statement said.

Airlines For America, a trade group representing American Airlines, United and Delta and others, criticized the news, saying: “A4A airlines are providing automatic refunds if the passenger decides not to rebook their reservation, regardless of whether the delay is significant. or cancellation are within the carrier’s control, and also provide refunds for food, transportation and accommodation in the event of significant controllable delays.

The group said requiring additional cash compensation “will increase ticket prices, make air travel less accessible to price-sensitive travelers, and negatively impact airline operations.”

The group called for the Biden administration to focus on other airline industry issues, such as the shortage of air traffic controllers and the Federal Aviation Administration’s infrastructure.