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USDOT wants public comment on compensation rules for

delays

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President-elect Trump will decide whether to move forward

with

regulations

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Transportation Secretary Buttigieg has taken hard line on

airlines

By David Shepardson

CHICAGO, Dec 5 (Reuters) - The U.S. Department of

Transportation said on Thursday it was seeking public comment on

whether airlines should be required to pay passengers cash

compensation when flight disruptions are caused by carriers.

The USDOT is giving the public 60 days to comment as it

launches the rulemaking process but stopped short of issuing a

formal proposal. It will be up to President-elect Donald Trump's

administration to decide whether to pursue regulations. Trump

has vowed to slash regulations broadly.

"It's very reasonable to say you have some compensation for

your time and some protections," U.S. Transportation Secretary

Pete Buttigieg said in an interview at an aviation event.

He said compensation rules for delays "would change the

economic incentive in a way that motivates airlines to do more."

In May 2023, President Joe Biden said his administration

would write rules requiring airlines to compensate passengers

for disrupted flights and said the USDOT would issue a proposal

by the end of 2023.

Canada, Brazil, the European Union and the United Kingdom

all have airline delay compensation rules but Buttigieg said the

USDOT is not "copypasting" Europe's rules.

The USDOT wants comment on whether airlines should be

required to pay $200-$300 for domestic delays of at least three

hours, $375-$525 for six-hour delays, and $750-$775 for

nine-hour delays.

Airlines for America, a trade group representing American

Airlines ( AAL ), Delta Air Lines ( DAL ), United Airlines

and others, sharply criticized the proposal. Airlines

have sparred with USDOT over flight disruptions and sued to

block USDOT's fee disclosure rules.

"Mandating additional cash compensation - beyond what

airlines already provide - will drive up ticket prices," the

group said. "This proposal is simply one in a long string of

ill-conceived and rushed rules from an administration intent on

reregulating the U.S. airline industry."

Airlines must refund passengers for canceled flights, but

are not required to compensate customers for delays. Major

carriers have committed to paying for meals, hotel stays and

other expenses when they cause significant flight disruptions.

Buttigieg noted, however, that the USDOT had required and

prodded airlines to do more.

"I'm not terribly surprised that when we require them to

treat passengers better they're going to fight back," he said.

The USDOT is considering whether small airlines should pay

less, if compensation should be required when passengers are

notified well in advance, and if airlines must cover meals,

hotel stays and other costs after carrier disruptions.

The USDOT is also considering requiring airlines to rebook

passengers on their next available flights, or if flights are

unavailable for 24 hours, potentially requiring them to use

competitors.

It is unclear if the USDOT needs additional authority from

Congress to mandate delay compensation.

Buttigieg has taken an assertive approach to investigating

airlines. He said the USDOT is working to finalize family

seating and wheelchair rules by Jan. 20.