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Biden administration strengthens airline-consumer protections as term nears end


The Biden administration is considering a proposal that would require airlines to pay cash compensation and cover lodging and meals for passengers who are stranded due to flight cancellations or changes. This rule would go beyond the current requirement for airlines to provide ticket refunds and bring U.S. policy more in line with airline consumer protections in Europe. The proposal is being driven by the record-breaking numbers in air travel and is aimed at discouraging airlines from causing delays and ensuring they take care of passengers when issues occur.

The industry trade group Airlines for America has criticized the proposal, saying it would drive up ticket prices and is unnecessary in a competitive industry where carriers already provide quality service. The Transportation Department is seeking public comment on the proposal, which includes cash compensation starting at $200 for canceled or significantly delayed flights due to mechanical problems or computer outages. The compensation could go as high as $775 for delays of nine hours or more.

The proposal will likely include free rebooking on the next available flight and meals and lodging for passengers stranded overnight. Many major U.S. airlines already provide this assistance when delays or cancellations are their fault. The Department will also seek input on how to distinguish between cancellations or delays that are within an airline’s control and those that are not. Transportation Secretary Pete Buttigieg believes that these consumer protections have bipartisan support in Congress and hopes that the next administration will continue to prioritize and maintain them.

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