Update: December 6, 2024, at 11:30 a.m. ET
The International Air Transport Association (IATA) released
a statement on the U.S. Department of Transportation’s (DOT) additional action to
hold airlines accountable and protect passengers when unexpected flight
disruptions impact their travel:
The IATA is
disappointed that the Biden Administration has announced its long-threatened
compensation scheme for airline delays and cancelations. 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 US has one of the most dynamic and competitive
airline industries in the world – facilitated by the visionary Airline
Deregulation Act of 1978. Rather than increasing the cost of travel for
passengers by rolling back deregulation that has democratized airline travel,
the US Government should focus its attention on addressing the causes of delays
and cancellations under its control, such as the understaffed and outdated air
traffic control system.
Original Text
The U.S. Department of Transportation (DOT) has taken additional action in its efforts to hold airlines accountable and protect passengers when unexpected flight disruptions impact their travel.
DOT launched the Advance Notice of Proposed Rulemaking (ANPRM) on Thursday, 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.
This would include a mechanical issue or an IT airline system breakdown, DOT said.
"Americans know the importance of a robust airline industry, which is why this country—and U.S. taxpayers—kept U.S. airlines afloat when the COVID pandemic threatened their very existence," U.S. Transportation Secretary Pete Buttigieg said in a statement.
"Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections. This action we’re announcing is another step forward into a better era for commercial air travel—where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines."
Cash Compensation
DOT is considering requiring airlines to pay at least $200 in cash to travelers with a qualifying flight delay or cancellation.
Officials could take a tiered approach where compensation could range from $200 to $775.
- $200-$300 for domestic delays of at least three hours but less than six
- $375-$525 for delays of at least six hours but less than nine
- $750-$775 for delays of nine hours or more
Other considerations include whether small airlines should pay less than large airlines and whether compensation should be required when a passenger is notified a week or two in advance of the cancellation or significant delay.
Crowd of people waiting to board their flight (Photo Credit: Eric Bowman)
Free Rebooking
DOT is also considering requiring airlines to offer free rebooking when a customer's flight is canceled or delayed three hours or more domestically or six hours or more internationally. A delay resulting in a missed connection would also qualify.
The rule would also require rebooking on the next available flight operated by the airline or its branded codeshare partners. If unavailable within 24 hours, then passengers would be rebooked on any airline that the carrier has a commercial agreement to transport its passengers.
Covering Travel Expenses
DOT is considering requiring airlines to provide meals, overnight lodging and transportation to and from accommodations for stranded passengers. The rulemaking would also establish standards regarding what must be covered as part of each service. This would include how often it must be provided during lengthy disruptions.
The department could also require airlines to automatically pay a minimum reimbursement for each service an affected customer is entitled to receive when airlines fail to provide these services upfront and passengers do not submit receipts for costs up to a maximum reimbursement threshold per service.
The CEO of AirHelp—the world’s largest advocate for air passenger rights—Tomasz Pawliszyn said Thursday's news "marks a crucial step forward for U.S. passenger rights, as the DOT begins its rulemaking process to protect passengers affected by airline disruptions."
"If today’s rulemaking is put into effect it will have a massively positive impact on the 1 billion U.S. passengers who fly each year," he added. "Over 17.5 million U.S. passengers faced a flight cancellation in the last 12 months, and a further 17 million had a flight delayed longer than 3 hours."
The public has 60 days to comment on the ANPRM on Airline Passenger Rights.
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