U.S. President, Joe Biden and Transportation Secretary, Pete Buttigieg, are set to propose a new rule that requires airlines to compensate passengers with cash for flight delays or cancellations on the carriers’ side, Biden announced on Monday.
The rule is one of moves by Biden’s administration to boost passenger consumer protections for domestic U.S. flights and international flights with an American destination or origin.
“Summer travel is going to put enormous pressure on the system, airlines need to accept their fundamental responsibility to better serve passengers,” said Pete Buttigieg on Monday.
The U.S. Department of Transportation has asked carriers last year to pay a minimum of $100 for delays of at least three hours caused by airlines, but did not specify its aim for the planned rule.
“We are planning to write regulations that will require airlines to cover expenses such as meals and hotels if carriers are responsible for stranding passengers,” said the Transportation Department.
Biden administration has previously objected to family seating fees, investigated 10 carriers for failing to refund its clients, pressed Southwest Airlines to take action following the cancellation of 16,000 flights during a holiday.
No U.S. carriers have agreed on the cash compensation rule for delayed or canceled flights under carriers’ control, the Transportation Department said on a government website.
“U.S. airlines have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time, but safety is always the top priority,” said Airlines for America, a trade association representing Delta Airlines, United Airlines and others.
The Federal Aviation Administration (FAA) does not have enough air traffic control staff, and is operating 10 percent fewer flights than in 2019 to reduce pressure on the system, U.S. airlines added.
Majority of U.S. airlines have opposed the Transportation Department plans to update its dashboard to show whether carriers would voluntarily compensate passengers for lengthy delays under airlines’ control.
