The US Department of Transportation (DOT) is seeking public comment on a proposal that would require airlines to pay passengers cash compensation when flight disruptions are caused by the carrier. The proposal aims to address delays caused by airlines, with potential compensation amounts ranging from $200 to $775 per person, depending on the length of the delay.
US Transportation Secretary Pete Buttigieg has taken a hard line on airlines and believes that mandatory compensation rules would motivate them to do more to treat passengers better. He stated that such rules would change the economic incentive for airlines, encouraging them to take greater responsibility for disruptions.
However, major airline groups have strongly opposed the proposal, citing concerns that it would drive up ticket prices and add unnecessary regulatory burdens. The Airlines for America trade group has criticized the plan as “ill-conceived” and “rushed,” suggesting that it is part of a broader effort to reregulate the US airline industry.
The DOT is also considering other measures, such as requiring airlines to rebook passengers on their next available flights or covering meals, hotel stays, and other expenses after disruptions. It is unclear whether additional authority from Congress would be needed to mandate delay compensation.
As President-elect Donald Trump’s administration prepares to decide on the proposal, it remains to be seen whether mandatory airline passenger compensation will become a reality.
Source: https://www.reuters.com/business/aerospace-defense/us-seeks-comment-airline-passenger-cash-compensation-proposal-2024-12-05