Airline passengers would be paid for major delays under rules being considered by the Biden administration

The Biden administration is considering new rules that would require airlines to pay passengers for significant delays that are within an airline’s control.

The U.S. Department of Transportation on Thursday launched a rulemaking process billed as a measure to “protect passengers stranded by airlines” that is now open for public comment.

The aim is to set basic standards for what airlines should offer their passengers when disruption occurs, including a cancellation or an extended delay due to airline-related circumstances, such as a mechanical problem or an IT system failure .

The proposed standards include requiring airlines to compensate passengers for delays on a sliding scale: $200 to $300 for domestic delays of at least three hours, $375 to $525 for delays of at least six hours, and $750 to $775 dollars for delays of at least nine hours.

The ministry is also considering whether small airlines should pay less than large ones and whether compensation should be required if a passenger is notified of the cancellation or significant delay one or two weeks in advance.

Other proposals include requiring airlines to rebook passengers on the next available flight at no additional cost and to cover meals, overnight stays and related transportation costs for stranded passengers.

The public has 60 days to comment.

According to airline data submitted to the DOT, in 2022 and 2023, over 60% of domestic flight delays of three hours or longer were “airline caused.”

Additionally, the Congressional Government Accountability Office found that flight cancellations from July 2021 to April 2022 may have affected over 15 million passengers and that delays may have affected over 116 million people.

The press release noted that the UK, EU, Canada and Brazil have introduced consumer protection measures to compensate passengers and provide services with significant delays.

“A study found that European Union compensation and service requirements reduced the likelihood and duration of flight delays,” the DOT said in a news release.

At the moment, Airlines are required to refund passengers for canceled flights, but there are no rules for delays. Several airlines must provide at least $50 in credits or vouchers for disruptions, the DOT said.

The DOT noted that 10 major U.S. airlines have already committed to rebooking stranded passengers at no additional cost and covering meals during airline-caused disruptions, and nine have committed to covering accommodation and associated transportation costs care for.

“However, airlines have the discretion to change the course of their customer service obligations, and it is often up to the airlines to determine when they are responsible for a flight delay or cancellation,” the DOT news release said.

Airlines For America, a trade group representing American Airlines, United and Delta and others, criticized the news, saying: “A4A airlines provide automatic refunds if the passenger chooses not to rebook – regardless of the significant delay or Cancellation is within the deadline.” Control of the carrier – and also reimbursement of meals, transport and accommodation in the event of significant, controllable delays.”

The group said the introduction of additional cash compensation “will drive up ticket prices, make air travel less accessible to budget travelers and have a negative impact on the airline’s operations.”

The group called on the Biden administration to focus on other problems facing the airline industry, such as the shortage of air traffic controllers and the Federal Aviation Administration’s infrastructure.