The Biden administration is considering requiring airlines to pay cash compensation and cover lodging and meals for passengers who are stranded due to flight cancellations or changes. This proposed rule aims to provide more robust consumer protections similar to those in Europe. The industry trade group Airlines for America opposes the proposal, claiming it would lead to higher ticket prices.
The Transportation Department, under Secretary Pete Buttigieg, is seeking public input on the possibility of cash compensation starting at $200 for significant delays or cancellations resulting from mechanical issues or airline computer outages. The agency is also considering providing free rebooking on the next available flight, meals, and lodging when passengers are stranded overnight.
Buttigieg believes implementing a compensation rule would encourage airlines to be more accountable for flight disruptions. The administration’s move follows record-breaking air travel levels and bipartisan support for airline consumer protections in Congress. The fate of these potential regulations will ultimately fall on the next administration led by President-elect Donald Trump.
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