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 >
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved