financetom
Business
financetom
/
Business
/
US seeks comment on airline passenger cash compensation proposal
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US seeks comment on airline passenger cash compensation proposal
Dec 5, 2024 5:04 AM

CHICAGO (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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
SoFi Techs Unusual Options Activity
SoFi Techs Unusual Options Activity
Oct 17, 2024
Whales with a lot of money to spend have taken a noticeably bearish stance on SoFi Techs. Looking at options history for SoFi Techs we detected 19 trades. If we consider the specifics of each trade, it is accurate to state that 15% of the investors opened trades with bullish expectations and 84% with bearish. From the overall spotted trades,...
National Bank on Altius Minerals' Q3 Royalty Revenue
National Bank on Altius Minerals' Q3 Royalty Revenue
Oct 17, 2024
01:53 PM EDT, 10/17/2024 (MT Newswires) -- Altius Minerals ( ATUSF ) announced expected third quarter attributable royalty revenue of $16.6 million, missing National Bank's estimate of $18.4 million. National Bank expects the revenue miss will lead to a negative impact of ~$1.9 million to NBF's current third quarter attributable EBITDA estimate of $13.3 million (~14%). Analyst Shane Nagle says...
Billionaire hedge fund manager Loeb shifts portfolio, eyes possible Republican U.S. election wins
Billionaire hedge fund manager Loeb shifts portfolio, eyes possible Republican U.S. election wins
Oct 17, 2024
NEW YORK (Reuters) - Billionaire investor Daniel Loeb adjusted his portfolio to capture a potential boom in corporate activity after the Nov. 5 U.S. election where he expects the Republican Party will chalk up wins. Loeb believes the Republican presidential candidate, Donald Trump, is more likely to win the White House and that his party's policies could help boost financial...
Ray-Ban maker EssilorLuxottica misses sales expectations as China slows
Ray-Ban maker EssilorLuxottica misses sales expectations as China slows
Oct 17, 2024
Oct 17 (Reuters) - Franco-Italian eyewear maker EssilorLuxottica missed third quarter revenue expectations on Thursday, dented by a slowdown in consumer spending in China. Group revenue for the three months ended Sept. 30 came in at 6.44 billion euros ($6.97 billion), below analysts' forecasts of 6.58 billion euros, according to a Visible Alpha consensus cited by Dow Jones. Group Chief...
Copyright 2023-2026 - www.financetom.com All Rights Reserved