Topline
Airlines could be required to compensate passengers for canceled and majorly delayed flights under new White House proposals that will reportedly be announced Monday, following a chaotic 2022 travel season and amid wider efforts to expand protections for travelers and crack down on additional fees tacked on by carriers.
Travellers wait next to their luggage near the Southwest Airlines baggage claim area at the … [+]
Key Facts
President Joe Biden and Transportation Secretary Pete Buttigieg will outline the plans Monday, multiple outlets reported, citing the White House.
Under existing rules, airlines are only required to issue refunds in the event of a long delay or cancelation.
The proposed changes aim to expand upon this by requiring airlines to provide additional cash compensation on top of the refund and also cover an affected passenger’s overnight hotel and transportation expenses.
Only delays and cancellations caused by circumstances under the airline’s control will be targeted by the plans, according to the reports.
According to the Department of Transportation, no U.S. airlines currently offer cash compensation for major delays and cancellations, while only a couple offer travel vouchers or frequent flier miles.
Key Background
Monday’s announcement comes ahead of a summer travel season that officials expect will outdo pre-pandemic levels. Airlines, following a disastrous summer last year during which tens of thousands of flights were canceled, will be keen to run a tighter ship this time around. Earlier this year, Biden and the Transport Department criticized airlines and other service providers for charging for basic amenities like seating, which Biden noted forces parents to pay to ensure they are seated next to their children. “Baggage fees are bad enough – they can’t just treat your child like a piece of luggage,” Biden said in his State of the Union speech. In March, Buttigieg wrote a letter to Congress urging them to pass legislation ensuring that families can sit together on planes without having to pay any additional fees.
Surprising Fact
A report published by the Government Accountability Office last month found that factors under the airlines’ control—like maintenance issues and staffing shortages—were “the leading cause of cancellations from October through December 2021 as well as in April 2022.”
What To Watch For
It is unclear if the proposals will result in any concrete rule changes as they could face stiff opposition from the airline industry. Republicans in Congress have also signaled their opposition to additional regulations for airlines, despite the recent chaos. The Federal Aviation Administration’s current staffing and infrastructure limitations—one of the causes behind the travel meltdown last summer—is unlikely to see any rapid improvement with the Republicans’ budget proposal calling for a $1.4 billion cut in the agency’s funding.
Further Reading
Get Ready For Another Hellish Summer Of Air Travel (Forbes)
Source: https://www.forbes.com/sites/siladityaray/2023/05/08/airlines-could-soon-have-to-compensate-passengers-for-major-delays-and-cancelations/