Airline compensation requirements dropped by American regulator
The US Department of Transportation (DoT) has announced it will not implement a proposed rule that would require airlines to pay cash compensation to passengers for flight delays or cancellations within their control. This decision, made under the Trump administration's deregulatory agenda, contrasts with consumer protection regimes in other jurisdictions such as the EU and UK.
The proposed rule, introduced under President Biden and his Transportation Secretary Pete Buttigieg, would have mandated payments of up to USD 300 for domestic delays lasting three to six hours, and up to USD 775 for delays of nine hours or more. In the EU, passengers may claim between EUR 250 and EUR 600 depending on the flight distance for cancellations or delays of more than three hours. Similarly, in the UK, passengers may claim between GBP 220 and GBP 520 depending on the flight distance for cancellations or delays of more than three hours.
Airlines for America, the industry trade group representing US carriers, opposes the Biden-era plan for cash compensation for flight delays or cancellations. The trade group looks forward to working with the DoT on implementing President Trump's deregulatory agenda and welcomes the department's decision to review unnecessary and burdensome regulations.
The DoT's decision not to implement the proposed rule is part of its effort to ensure fair treatment for the traveling public while acknowledging the impact of overly burdensome regulations on the American people. The department is also considering repealing requirements for airlines to disclose ancillary fees, such as baggage charges, upfront.
However, the DoT stated it will continue to enforce existing obligations, including refunding ticket prices to passengers in the case of airline cancellations or substantial delays. Exceptions apply in both the UK and EU where the delay or cancellation is caused by extraordinary circumstances, such as severe weather or air traffic control strikes.
The DoT's statement was made to CBS News. The decision not to implement the proposed rule is in line with the department's commitment to carrying out consumer protection mandates from Congress in the recent FAA Reauthorization Act, including provisions relating to refunds.
In both the UK and EU, airlines must provide meals, refreshments, and accommodation when necessary for flight disruptions. This is part of the statutory compensation frameworks for flight disruptions that these regions maintain, unlike the US.
The DoT spokesperson noted that some rules proposed by the previous administration went beyond what Congress has required by statute and will be reconsidered. The DoT's action is a step towards ensuring a balanced approach that protects consumers while fostering a competitive and efficient aviation industry in the US.
