U.S. DOT proposing EU-style compensation

In what is likely its last major initiative before a new administration takes office, the U.S. Department of Transportation is moving to bring EU-261-style compensation for delayed or canceled flights to U.S. air passengers.

The proposals, laid out by Transportation Secretary Pete Buttegieg, would require compensation of $200 to $775, depending on length of delay, for significant delays or cancellations caused by the carrier, including mechanical delays, staff shortages or IT outages. Airlines could avoid the fees by providing alternate flights, possibly on other carriers, that eliminated or shortened the delay in reaching the passenger’s destination.

The rules would also expand carriers’ responsibility for rebooking on other carriers in case of extended delays, set at three hours domestically or six hours for international flights, or if canceled. The rule would also include a requirement that all airlines rebook passengers on the next available flight at no charge, which most of them already do.

Finally the DOT’s proposal would also require airlines to cover the cost of food, lodging and related ground transportation for passengers whose flight delays or cancellations result in an unplanned overnight stay.

DOT’s proposed compensation chart, which also applies to cancelations

  • $200-300 for domestic flight delays of three to six hours
  • $375-525 for delays between six and nine hours
  • $750-775 for delays of nine hours or more

The proposals are now open for 60 days of comment before the rules or an amended version can be finalized. Since that puts the end of the period into the next Administration, with likely changes in leadership of DOT, it is by no means certain the rules will survive the transition.

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