U.S. DoT posts airline accommodations provided to passengers in the event of a delay or cancellation

The U.S. Department of Transportation is debuting a new dashboard detailing the types of accommodations that airlines provide to customers in the event of a delay or cancellation within a carrier’s control.

Now passengers will be able to see how airlines stack up against one another. American, Delta, Jet Blue, United and Southwest have all rewritten their policies so passengers can more easily understand their protections.

In the EU, passengers are protected under EC261, which remains one of the world’s most comprehensive air passenger rights – covering delays, cancellations and overbookings.

Does the U.S. need EU-style air passenger rights regulations in place?

What this means for passengers moving forward, and how U.S. air travelers can claim their rights?

What is likely to happen after this summer’s air travel fiascoes?
After a summer of travel chaos in the U.S., consumers are frustrated as many have now experienced firsthand how difficult it is to receive a refund from airlines in the event of a flight disruption. The U.S. Department of Transportation published a new proposal aiming to expand consumer rights when it comes to flight disruptions (cancellations, 3+ hour delays), making full refunds for both domestic and international flights easier to receive. Since this is still in the proposal phase, nothing has been signed into law just yet – adjustments are still likely to be made before it’s confirmed, but as of now it seems promising and U.S. airlines have expressed initial support for the proposed policies.

What kind of new regulations (if any) are realistic?
Using Europe as an example where EC261 is in place to protect air passenger rights, a similar set of regulations is possible in the U.S. and what the DOT is proposing to provide passengers with full refunds in the event of a flight disruption. EC261 stands also as a role model for other countries including Canada, UK, Turkey and Ukraine – the U.S. should be the next one to follow.

EC 261 has proven successful in the EU in terms of improving the quality of air service. The EU market has 3x fewer long delays than its U.S. counterpart. We believe one crucial reason for the difference is the existence of air passenger rights regulation – or lack thereof in the U.S. According to another study, EC261 directly results in 5% fewer delays.

Law similar to EC261 is not a huge cost for the airlines or for the passengers – it adds just over $1 per ticket ($1.06). Whereas according to research, 89% of travelers are prepared to pay part of their ticket cost for air passenger rights (APR). Disruptions, on the other hand, cost air passengers far more. Flight disruption costs airlines $8.3 billion, and passengers $16.7 billion per year.

And how would they affect air travelers?
Air travelers and their frustrations with the airline chaos over the last few months were the catalyst for the push for air passenger rights in the U.S. They stand to benefit from the implementation of new law similar to the EU’s EC261. Avoiding flight disruptions and arriving on time are the most important factors for traveler satisfaction, according to a Lufthansa study. Preparing enforceable, strong and reliable rules would result in a drop in disruption numbers and rise in overall customer satisfaction. EC261 also eliminated the problem of overbooking in Europe, which still is an issue in the U.S. In Europe, 91% of passengers support the existing law (3-hour threshold) and 75% of them even think the threshold for flight delay compensation should be lowered.

Commentary by Tomasz Pawliszyn, CEO of AirHelp – an air passenger rights company https://www.airhelp.com