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Airlines are under pressure from the Biden administration to compensate passengers for delays and cancellations.

NEWS - 09-05-2023


The Biden administration is putting forth a set of regulations that would oblige airlines to pay out passengers in the event of any significant aircraft delays or cancellations.

The U.S. Department of Transportation will require that airlines pay for meals, lodging, and rebookings whenever passengers experience lengthy delays or cancellations brought on by an airline as part of this campaign. In addition to potential refunds, it would call for cash compensation.

At a press conference on Monday afternoon, President Joe Biden remarked, "That's unacceptable. Many [travelers] missed family get-togethers; spent Christmas at an airport; waited countless hours in line or on the phone because there wasn't enough personnel." There is still a problem, even if there have been fewer airline delays and cancellations since then.

The Department of Transportation recently launched the website FlightRights.gov, an upgrade to the existing airline consumer service dashboard that lists whether airlines already provide monetary compensation, travel credits, vouchers, or frequent flyer miles for delays and cancellations.

According to the dashboard, none of the big American airlines presently provide monetary compensation for cancellations. According to the DOT, only one airline offers frequent flyer points, and two offer travel credits or vouchers to customers who encounter major delays or cancellations brought on by circumstances under the airline's control.

Moreover, the proposed regulation would specify what counts as a "controllable cancellation or delay."

U.S. Transportation Secretary Pete Buttigieg said in a statement that passengers "should not bear the cost when an airline causes a flight cancellation or delay."

The suggestion comes as the Biden administration has sought to hold the aviation sector liable for several consumer protection issues. Free family seats, fee disclosures for extra charges, flight modifications, and cancellations are some of these problems.

Washington has criticized airlines for their clumsy post-pandemic recovery that has resulted in numerous flight delays and cancellations. Air traffic control and pilot staffing shortages caused thousands of flights each day last summer to be postponed or canceled.

Government assistance totaling more than $50 billion was provided to airlines during the height of the COVID-19 pandemic to prevent layoffs and prepare them for the resumption of passenger flights. Legislators, meanwhile, are displeased with the industry's lack of preparation for escalating client demand.

In the early stages of the pandemic, during the previous administration's 2020, "the American taxpayer stepped up to provide nearly $50 billion in assistance to keep the airline industry and its employees afloat," Biden said at the conference. Because of this, obtaining fairer terms for American airline passengers has been our primary focus.

In the years following COVID-19, airline cancellations and delays dramatically surpassed pre-pandemic norms, according to a Government Accountability Office assessment released in April. As travel demand rose, these problems started to occur more frequently. The GAO study states that as a result of the delays and cancellations, there was a considerable increase in the number of passenger complaints the DOT received about flight-related problems.

Carriers have accepted responsibility for the problems that are within their control and have worked to improve their operational reliability, according to a statement from Airlines for America, a trade association that represents the main U.S. airlines.

According to A4A, "U.S. airlines have no incentive to delay or cancel a flight and take all reasonable steps to ensure flights depart and arrive on time."