By David Shepardson
WASHINGTON (Reuters) – Major U.S. airlines have made a request to the U.S. Transportation Department to discontinue a review initiated by the Biden administration. The review concerns whether airlines should be mandated to provide compensation to passengers for flight disruptions.
Airlines for America, a trade association representing American Airlines, Delta Air Lines, United Airlines, and others, has urged the Trump administration to terminate the review that began in December. The purpose of the review was to gather feedback on whether U.S. airlines should be obligated to offer monetary compensation for disruptions caused by carriers, a practice required in the European Union and Canada.
In their appeal, the group argued that airlines do not require additional incentives to deliver high-quality service. They claimed that the U.S. Department of Transportation (USDOT) lacks the legal authority to enforce such a regulation. Additionally, they contended that implementing compensation requirements would significantly increase airlines’ costs, subsequently leading to higher ticket prices.
The International Air Transport Association, which represents airlines globally, also criticized the proposed compensation programs. They stated that these programs have imposed substantial financial burdens on airlines without effectively reducing flight disruptions.
Spirit Airlines went as far as to characterize the proposal as extreme, suggesting that it might prompt airlines to reconsider operating flights that should have been delayed or canceled due to safety concerns.
In December, USDOT invited comments on the possibility of mandating airlines to pay compensation ranging from $200 to $775 for domestic flight delays of varying durations. Former Transportation Secretary Pete Buttigieg stated that introducing compensation rules for delays could alter the economic incentives, encouraging airlines to improve their services.
President Joe Biden announced in May 2023 that his administration would establish regulations compelling airlines to compensate passengers for disrupted flights within the upcoming months. While airlines are obligated to refund passengers for canceled flights, they are not currently required to compensate customers for delays.
Major airline carriers have committed to covering expenses such as meals and hotel accommodations for passengers in the event of significant flight disruptions caused by the airlines.
In a recent development, a U.S. court blocked a 2024 rule proposed by the Biden administration that would have mandated upfront disclosure of airline service fees. The court ruled that USDOT had failed to adhere to procedural guidelines.
(Reporting by David Shepardson; Editing by Bill Berkrot)
