The Biden administration on Monday Announced plans for new regulations requiring airlines to provide compensation and cover the costs of meals and hotel rooms to stranded passengers when airlines are at fault for travel disruptions.
«When an airline causes a flight to be canceled or delayed, passengers don’t have to pay the bill,» Transportation Secretary Pete Buttigieg said in a statement. “This rule, for the first time in US history, would propose requiring airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline caused a cancellation or a significant delay.
According to the Department of Transportation, the planned proposals aim to require airlines to provide compensation to passengers when there is a «controllable airline cancellation or significant delay, including meals, transportation to and from the hotel, and charges incurred when rebooking on another flight.
Currently, airlines do not guarantee cash compensation when an airline-related issue causes a significant delay or cancellation. Airlines often guarantee frequent flyer miles, travel credits, or coupons to passengers who experience delays or cancellations caused by a problem within the airline’s control, such as a mechanical problem. DOT said it seeks to ensure passengers are better protected against financial loss with the proposed rules, and that it plans to define «controllable cancellation and delay» in this rulemaking.
The announcement comes as part of a push by the Biden administration to improve customer service for airline passengers. The Department of Transportation published a online board designed to improve customer service after widespread flight disruptions last summer. The dashboard allows passengers to check an airline’s refund and compensation policy in the event of a flight cancellation or delay. Many of the largest US airlines guarantee meals or hotel stays when they are at fault for a delay or cancellation, according to the dashboard.
The DOT also said it believes the proposed rules will help improve airline punctuality.
The DOT launched an investigation into Southwest Airlines after thousands of its flights were canceled in late December. The department said it was investigating whether company executives scheduled an unrealistic volume of flights, «which under federal law is considered an unfair and deceptive practice.» The carrier said that he is cooperating with all inquiries.