DOT Proposes Mandatory Compensation for Flight Delays
The U.S. Department of Transportation (DOT) has proposed a landmark rule requiring airlines to compensate passengers for delays caused by the carrier. The proposal, announced on December 5, includes mandatory compensation ranging from $200 to $775 per passenger, depending on the length of the delay and the flight. Additionally, airlines would need to provide free accommodations, transportation, and meals when necessary.
The rule stipulates that airlines must rebook affected passengers on the next available flight, even with another carrier, in cases of cancellations, significant delays, or missed connections. The framework mirrors the European Union’s passenger protection regulations, implemented in 2005. However, the DOT clarified that compensation would apply only to delays within an airline’s control.
The proposed regulation leaves several questions open for public comment until February 2025, after the transition to the incoming Trump administration. These include the specific compensation amounts, potential adjustments for smaller airlines, and clearer definitions of delays under an airline’s control.
This initiative is part of a series of pro-consumer policies introduced under the Biden administration. Earlier in 2024, airlines were mandated to issue automatic cash refunds for canceled or significantly delayed flights. Additional rules, such as requiring upfront transparency on ancillary fees during booking, are also under consideration, although some, like the “surprise airline junk fee rule,” face legal challenges.
The proposal has sparked mixed reactions across the aviation industry. Delta Air Lines CEO Ed Bastian expressed optimism about a policy shift under the Trump administration, criticizing recent regulations as “overreach.” Southwest Airlines CEO Robert Jordan echoed hopes for less stringent DOT policies. However, Transportation Secretary Pete Buttigieg defended the measures, citing widespread public support and alignment with good business outcomes.
The debate over passenger rights has also intensified in Congress. During a Senate hearing on December 4, airlines faced bipartisan criticism over ancillary fees. Democratic Senator Richard Blumenthal led the charge, while Republican Senator Josh Hawley criticized the passenger experience in the U.S. as marred by excessive fees.
Meanwhile, Delta Air Lines emerged as the top airline donor in the 2024 election cycle, contributing $1.5 million to Republican candidates out of $2.8 million in total donations. Despite this, the aviation sector’s overall contributions leaned slightly more toward Democrats.
On a related note, Canada’s Transport Minister Anita Anand announced plans to summon airlines for discussions on passenger policies following Air Canada’s introduction of carry-on fees effective January 3, 2025.
The fate of the DOT’s compensation proposal remains uncertain as airlines lobby for regulatory rollbacks, while passenger advocacy groups push for stronger protections. The public commentary period will likely shape the next phase of this contentious debate over consumer rights in air travel.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com