The Biden administration is proposing a new set of rules for how airlines handle passengers who are delayed or canceled by ‘controllable events,’ which would be defined by the new rules.
At present, when airlines cancel or create significant delays, there are few requirements for compensation for extra expenses such as meals and hotel costs, lost time, or missed reservations at destinations. The only universal requirements cover refunds for canceled flights, although most airlines offer some compensation in the form of vouchers or loyalty points.
Europe’s rules for compensation are far different, requiring cash payments to travelers of up to €600 for a variety of cancelation and delay situations; EU 261, the rule that applies, shifts costs to the airlines on any flight originating or ending in Europe or flown by an EU airline.
In the U.S., Transportation Secretary Pete Buttagieg said, “When an airline causes a flight cancellation or delay, passengers should not foot the bill.” He and the White House both pointed to the large subsidies that kept the airlines afloat during the pandemic, when air traffic dropped by 90%.
Details of the proposed rules are still to come; once proposed they will go through an extensive set of hearings and comment periods before going into effect. They already face opposition from the airline industry, whose trade group Airlines for America says that the airlines have already taken responsibility and are working to improve.
