DelhiDesk The Biden administration plans to introduce new rules requiring US airlines to provide cash compensation for flight cancellations and significant delays caused by airlines. The measures would require airlines to cover additional expenses such as overnight hotel accommodations and transportation during significant flight disruptions. The move follows criticism of airlines for operational failures during the COVID-19 pandemic. US carriers are already required to issue refunds if a flight is canceled or significantly delayed. The new rules are likely to face pushback from airlines, which argue that such proposals make travel more costly for everyone. European Union rules require airlines to provide compensation in addition to refunds when flights are canceled or delayed by more than three hours.
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👉 President Biden and Transportation Secretary Pete Buttigieg will announce new rule-making that would require airlines to provide cash compensation and cover expenses such as overnight hotel accommodations and transportation during significant flight disruptions caused by airlines.
👉 The planned rule-making is part of the administration’s efforts to crack down on costs facing Americans and to hold airlines accountable for disruption caused by factors within their control.
👉 Airlines have come under increasing scrutiny for operational stumbles in recent years since the Covid-19 pandemic. Carriers received billions of dollars in government aid to avoid layoffs during the pandemic.
👉 US carriers are already required to issue refunds if a flight is canceled or “significantly delayed” and a customer opts not to travel. The Transportation Department last year proposed tightening those rules, making it more clear when refunds are mandated.
👉 The DOT will expand the online dashboard illustrating what different airlines offer passengers during disruptions to highlight which airlines offer cash compensation, provide travel credits or vouchers, or award frequent-flier miles as compensation for disruptions.
👉 No airline currently guarantees cash compensation in cases of preventable delays and cancellations, according to the White House.
👉 The administration’s proposal to require additional compensation beyond refunds is likely to generate pushback from airlines.
👉 Some Democratic lawmakers have previously argued that the DOT needs to do more to ensure customers get their money back and are compensated for the inconveniences of delayed and canceled flights.
👉 Sen. Ted Cruz (R., Texas) has cautioned that some proposals might inadvertently worsen the problems.
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