The current administration is looking to propose rules that will force airlines to pay passengers for canceled flights or major delays. On the face of it, this seems like a wonderful idea, as customers of airlines seem to be the ones holding the bag whenever major disruptions occur that cause large amounts of cancellations and delays.
We should note that a lot of the challenges airlines face today are remnants of the effects of the lockdowns due to the pandemic, labor challenges, high inflation, and other factors. That being said, having the airlines pay for cancellations and delays would mean that the airlines will need to account for this extra cost in their operations. Since airlines sometimes cannot control some of the factors that go into causing them to delay or cancel flights – extreme weather conditions and air traffic control delays, for example. Therefore, we expect that this ruling will increase the price of airline tickets even further, as airlines seek to offset the additional cost.
Let us be clear that we are not in support of massive cancellations and delays, and that we want the very best service possible for air travelers, but it is our view that rulings like these, generally, hurt the customer in the long run.
In this week’s Digest, we share some stories on this news, giving the reader further insights into what’s going on here.
White House Proposal Will Make Airlines Pay for Delays, Cancellations
Airlines may have to pay back passengers if they aren’t able to prevent some delays and cancellations under a new White House proposal that would require companies to cover expenses when passengers are stranded. The Transportation Department is looking to create a rule that would define a “controllable cancellation or delay” that airlines would be on the hook to cover. The rule would then require airlines to provide timely customer service, while also covering rebooking fees, meals, hotels, transportation or any other costs that flyers incur during a delay.
By Terry Lane | Investopedia
Biden, Buttigieg push for airlines to compensate passengers for controllable delays, cancelations
Just weeks before the start of the busy summer travel season, President Joe Biden and Transportation Secretary Pete Buttigieg announced a new process on Monday that seeks to provide relief for frustrated air travelers by requiring airlines to provide passengers with boosted compensation, including meals and hotels, if they are left stranded and it’s the airline’s fault. In his remarks, Biden noted that he knows American air travelers have been left frustrated in recent years. “I know how frustrated many of you are at the service you get from your U.S. airlines … I get it. That’s why our top priority has been to get American air travelers a better deal,” Biden said.
By Mariam Khan, Molly Nagle And Clara Mcmichael | Yahoo News
Joe Biden wants US airlines to pay stranded passengers
US President Joe Biden says he wants to implement new compensation rules for airline passengers impacted by flight delays or cancellations. The rules would require airlines to pay impacted passengers beyond a ticket refund if the carrier is responsible for the disruption. This may involve covering meals and hotels in the event that travellers are stranded, officials said. If implemented, it would be the first measure of its kind in the US. On Monday, Mr Biden and Transportation Secretary Pete Buttigieg announced the incoming set of rules at a White House news conference.
It comes just a few weeks after Mr Biden confirmed he will be running for re-election in 2024, and just ahead of the peak summer travel season.
By Nadine Yousif | BBC News
Biden Puts Airlines On Notice, Proposes Mandatory Compensation For Delays And Cancellations
President Joe Biden and Transportation Secretary Pete Buttigieg announced a new proposal on Monday aimed at holding airlines accountable for controllable cancellations and delays. What Happened: The proposed rule would require airlines to compensate customers for disruptions, and an expanded Airline Customer Service Dashboard at Transportation.gov will provide further transparency into airlines’ compensation policies. During his speech, Biden expressed understanding for the frustrations faced by American air travelers, noting that taxpayers provided the industry with nearly $50 billion in assistance during the pandemic.
By Benzinga | Business Insider
Note: The views and opinions expressed in the content shared in this digest are for informational purposes only, are solely those of the original content creators, and do not constitute an endorsement by or necessarily represent the views of On Aviation™ or its affiliates.
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