Proposed passenger rights and compensation rules

The rights of air passengers in the United States are ready for a makeover. It is lagging compared to other parts of the world, most notably Europe. Recognizing the need to protect the rights of air travelers, the Biden administration has proposed new regulations that would bring significant changes to air passenger compensation in the United States.

In this article, we will explore the proposed rule changes and how they align with the regulations in Europe. We will also examine the current compensation rules for flight delays and cancellations in the USA and highlight the primary distinction with the EU.

Resembling European regulations on EU flights

The proposed rule changes demonstrate a striking similarity to the regulations in the EU. Under Regulation (EC) No 261/2004, European air passengers are entitled to compensation and assistance in the event of flight delays, cancellations, or denied boarding due to overbooking. These protections have been highly regarded for their effectiveness in safeguarding passenger rights.

Current passenger Bill of Rights in the USA

Currently, in the United States, when an airline cancels a flight for any reason, passengers are entitled to a refund for the unused portion of their ticket and certain additional fees, such as baggage or seat assignment fees.

However, there are no specific regulations mandating compensation for flight delays or cancellations caused by factors within the airline’s control. This represents a significant difference from the EU, where passengers receive compensation for flight delays exceeding three hours, depending on the distance of the flight.

Improved compensation for US passengers

Recognizing the disparity between the rights of air passengers in the USA and the EU, the proposed rule changes aim to bridge the gap by providing additional compensation and support to affected passengers. The new regulations would require airlines to cover expenses such as meals, hotel accommodations, and rebooking for passengers experiencing flight cancellations or significant delays caused by factors within the airline’s control.

President Biden and Transportation Secretary Pete Buttigieg have expressed their commitment to ensuring that passengers do not bear the financial burden of flight disruptions caused by airlines.

“When an airline causes a flight cancellation or delay, passengers should not foot the bill,” said U.S. Transportation Secretary Pete Buttigieg. “This rule would, for the first time in U.S. history, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay.”

Impact will make history

The proposed rules reflect this dedication to providing passengers with fair compensation for their time and the impact on their lives. Secretary Buttigieg emphasized that the regulations would mark the first time in U.S. history that airlines would be required to compensate passengers and cover expenses in such circumstances.

By introducing regulations that would require airlines to compensate passengers and cover expenses for flight cancellations or significant delays within the airline’s control, the Biden administration aims to enhance the protection and support available to air travelers.

Another FAIR proposal

This is in line with the introduction of the Airline Passengers’ Bill of Rights and Forbidding Airlines from Imposing Ridiculous (FAIR) Fees Act. This bill was introduced by Senator Edward J. Markey (D-Mass.) and Senator Richard Blumenthal (D-Conn.). Although it’s sponsored by a bevy of senators, the bill is not officially endorsed by DOT.

The FAIR Fees Act would ensure that airlines provide passengers with fair compensation, refunds, and recourse in the event of airline-caused flight delays and cancellations, require airlines to pay at least $1,350 to passengers denied boarding as a result of an oversold flight, and mandate airlines to immediately refund bag fees for damaged or lost bags.

Although the specific timelines of both proposals are not yet known, these developments indicate a willingness for a positive future for air passenger rights in the United States. At airpassengerrights.com, we will continue to provide updates on the progress and implementation of these regulations and ensure that travelers remain informed of their rights and entitlements.

What are the proposed rule changes for flight compensation?

The proposed rules would address compensation to passengers in the event of a controllable airline cancellation or significant delay, such as a meal or meal voucher, overnight accommodations, ground transportation to and from a hotel, and rebooking for controllable delays or cancellations. Timely customer service during and after periods of widespread flight disruptions would also be addressed.

When will the new compensation rules by DOT take effect?

At the time of this writing, the proposed rule changes are still only a proposal. There is no indication as to when the proposal will be formally filed, nor is there any indication as to when the proposal will be in effect.

How does the proposal compare to European compensation laws?

The proposed rules have many similarities to the laws in Europe. Read more about European compensation rules here.