The Biden administration is considering rules that would require airlines to pay passengers for significant delays within a carrier’s control.
The Transportation Department on Thursday launched a rulemaking process, billed as a measure to “protect passengers stranded by airlines,” that is now open for public comment.
It seeks to establish baseline standards on what airlines should give passengers if there are disruptions, including cancellations or lengthy delays due to airline-related circumstances, such as mechanical issues or IT system breakdowns.
The proposed standards 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 ones and whether compensation should be required if passengers are notified a week or two in advance of cancellations or significant delays.
Other proposals include requiring airlines to rebook passengers at no additional cost on the next available flights and to cover meals, overnight lodging and related transportation expenses for stranded passengers.
The public has 60 days to offer comments.
Over 60% of three-hour or longer domestic flight delays were “airline-caused” in 2022 and 2023, according to airline data submitted to the Transportation Department.
Furthermore, Congress’ Government Accountability Office found that flight cancellations from July 2021 to April 2022 potentially affected over 15 million passengers and that delays potentially affected over 116 million people.
The news release noted that the United Kingdom, the European Union, Canada and Brazil have consumer protections to compensate passengers and provide services for significant delays.
“One study found that the European Union’s compensation and service requirements reduced the likelihood and duration of flight delays,” the Transportation Department said in a news release.
Currently, airlines are required to refund passengers for canceled flights, but there are no mandates for delays. Several airlines must provide at least $50 in credits or vouchers for disruptions, the Transportation Department said.
It noted that 10 major U.S. carriers have already committed to rebook stranded passengers at no additional cost and cover meals during airline-caused disruptions and that nine have committed to provide lodging and cover related transportation expenses.
“However, airlines can change course on their customer service commitments at their discretion, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation,” the Transportation Department release said.
Airlines for America, a trade group that represents American, United, Delta and others, criticized the news, saying: “A4A carriers are providing automatic refunds if the passenger chooses not to be rebooked — regardless of whether the significant delay or cancellation is within the carrier’s control — and also providing reimbursements for food, transportation and lodging for significant controllable delays.”
The group said mandating additional cash compensation “will drive up ticket prices, make air travel less accessible for price-sensitive travelers and negatively impact carrier operations.”
It called for the Biden administration to focus on other airline industry problems, such as the air traffic controller shortage and the Federal Aviation Administration’s infrastructure.
Jay Blackman
