by Mia Taylor
Last updated: 6:25 PM ET, Thu December 12, 2024
The Department of Transportation recently announced that it is taking steps to hold airlines accountable and protect passengers when unexpected flight disruptions impact their travel plans.
As part of that effort, DOT launched the Advance Notice of Proposed Rulemaking (ANPRM) last week, seeking public comment on a rule requiring airlines to pay passengers cash compensation, rebook them for free on the next available flight and cover meals, overnight lodging and related transportation expenses when a disruption is deemed to be airline-caused.
The proposed rule would apply to mechanical issues impacting flights or an IT airline system breakdown, DOT explained.
Not long after the DOT announcement, airline industry organizations criticized the proposal, suggesting it would be an undue burden for airlines and furthermore, will not solve the underlying problems that are causing flight cancellations in the first place.
The International Air Transport Association (IATA), for instance, released a statement harshly criticizing DOT’s efforts, which read in part:
The IATA is disappointed that the Biden Administration has announced its long-threatened compensation scheme for airline delays and cancellations. This, despite the fact that similar schemes in the European Union and Canada have proven completely ineffective in reducing underlying delays or cancelations, the majority of which are outside the control of the airlines.
Airlines already have policies in place to support passengers in the case of disruptions and have every incentive to limit delays. In Europe, the EU261 regulation, on which the Department of Transportation (DOT) proposal is based, costs airlines over $5 billion a year. These costs continue to rise and are eventually paid by consumers through higher fares and reduced choice.
The reality however, is that the United States is well behind other countries with regard to consumer protections for travelers, according to AirHelp, a company that assists consumers with claiming compensation they're due from airlines.
During a recent Q&A with TravelPulse, AirHelp’s chief legal officer, Eric Napoli, offered important context in the face of the airline industry's criticism of the Biden Administration efforts.
“The US DOT's new rule making under Secretary Buttigieg is a potential game changer for passenger rights in the US, and should the incoming Trump administration continue with these rules, it will be a massive step forward for travel in the US,” began Napoli.
“However, it’s important to note that the current state of passenger rights in the USA is far behind other regions,” Napoli added, pointing out that in contrast to IATA’s statement to the contrary consumer “compensation for delayed, cancelled, and overbooked flights in addition to a refund, has been in place and working well for more than 20 years in the EU, UK, but also in Turkey, Canada, and, more recently, Saudi Arabia.”
Strikes will take place throughout Europe in September (Photo Credit: Courtesy AdobeStock)
Depending on a passenger’s flight, flight scenario, and ultimate destination, filing for EU airline compensation under EU law EC261, can mean up to $650 per person in reimbursements, said Napoli.
Many American travelers may also be unfamiliar with the Montreal Convention and the rights it imparts for the traveling public. The Montreal Convention applies to international flights between nations that honor the EU’s EC261 regulation.
“It was signed and is recognized by more than 130 countries and counting around the world, including the US and the EU,” continued Napoli. “Most major airline markets are members with a few notable exceptions, such as Sri Lanka and Vietnam.”
And in yet another example of a country that has measures in place to protect consumers, Napoli pointed to ANAC 400 in Brazil.
“Anyone flying in Brazil is protected by legislation from Brazil’s National Civil Aviation Agency (ANAC),” explained Napoli. “If the airlines do not provide you with care, as per the law, you could be owed up to $1,800 in compensation.”
In contrast to the United States, these protections in Brazil, the EU and beyond have been in place for more than 20 years.
Since 2004, for instance, the European Union has stepped up to protect passenger rights through Regulation (EC) No 261/2004, which is better known as EU261. “Under this legislation, if your flight qualifies, an airline may owe you up to €600 (about $650) in compensation,” said Napoli.
It’s also important to note that under EU law, American carriers, or any carriers for that matter, are already required to pay passengers compensation for flight cancellations and delays.
“If your flight departs from an airport in the EU, it’s covered no matter the carrier,” Napoli explained.
If your flight originates elsewhere, on the other hand, but your destination is in the EU, coverage depends on the airline. If it’s a European carrier, you’re covered.
AirHelp has a chart to help passengers understand when they are covered.
This AirHelp chart can help passengers understand when they are covered by the EU's flight disruption consumer protections. (Photo Credit: Courtesy AirHelp)
Finally, AirHelp experts pointed out that the claims from industry organizations such as IATA that the Biden Administration’s proposed penalties would drive up ticket prices, is vastly overstated.
“Data shows that the actual cost per passenger to fully adopt these regulations in the U.S. would be between $0.40 - $0.90 per flight,” said Napoli. “For less than $1, U.S. air passengers would be able to have the same passenger rights as their European counterparts.”
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