The Biden administration is considering new rules that would require airlines to compensate passengers for significant delays within the carrier’s control. The U.S. Department of Transportation has opened a rule-making process for public comment, seeking to establish standards for compensation in case of disruptions like cancellations or lengthy delays caused by the airline. The proposed standards include tiered compensation ranging from $200 to $775 for delays of at least three to nine hours. The department is also considering factors like airline size and advance notice of delays. Passengers may be eligible for compensation for rebooking on the next available flight, meals, lodging, and transportation expenses. Over 60% of long domestic delays were airline-caused in 2022 and 2023, affecting millions of passengers. Other countries like the U.K., E.U., Canada, and Brazil already have consumer protection regulations in place. Currently, airlines are required to refund passengers for canceled flights, but not for delays. Some airlines already provide credits or vouchers for disruptions, and some have committed to offering rebooking and accommodation during disruptions. However, Airlines For America, representing major carriers, criticized the proposed rules, saying they would drive up ticket prices and have other negative impacts. The group called for the administration to focus on other airline industry issues, such as the air traffic controller shortage and FAA infrastructure.
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