The Biden administration makes final push for airline-customer protections

Dec 5

Listen

Karah Rucker Anchor

By Karah Rucker (Anchor), Jodie Hawkins (Senior Producer), Harry Fogle (Video Editor)

The Biden administration is making a final push to establish major consumer protections for airline passengers. The administration already put a rule requiring airlines to pay ticket refunds, but this new proposal goes further. It aligns more closely with European standards for airline compensation.

Bias Distribution Powered by Ground News™

The Department of Transportation announced plans Thursday, Dec. 5, taking steps toward requiring airlines to pay passengers with cash, meals and lodging if their flights get canceled or significantly changed due to a problem with the plane or a computer outage.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

What it means for the consumer

The proposal includes payments from $200 to $775, depending on the length of delay.

Current regulations have airlines decide how long a delay must last before issuing refunds. Under the new plan, a significant delay lasts at least three hours for domestic flights and six hours for international flights.

The proposal will also likely include free rebooking on the next available flight. In addition, stranded passengers would receive meals and hotel stays.

The department is also weighing allowing small airlines to pay less compensation than large ones.

Nearing the end of the Biden administration

Transportation Secretary Pete Buttigieg said the department is considering new protections near the end of President Joe Biden’s term because the airline industry is breaking records.

“This launch is a process that I think will lead to more improvements for passengers,” Buttigieg told MSNBC. “There’s really two goals here –make sure those kinds of disruptions are less likely to happen in the first place, and make sure you’re taken care of when they do.”

Could airline ticket prices increase?

Industry trade group Airlines for America responded to the proposal, saying it would drive up ticket prices.

“In this highly competitive industry, carriers don’t need further incentive to provide quality service. This proposal is simply one in a long string of ill-conceived and rushed rules from an administration intent on reregulating the U.S. airline industry,” Airlines for America said in a statement.

U.S. senators question airline executives

The move follows a Senate hearing on Wednesday, Dec. 4, on the multi-billion dollar business of airline fees, where airlines discussed implementing customer-specific pricing using AI and algorithms. That means everyone would pay a different price for the same seats on the same flight.

A congressional report out last week says that five of the nation’s largest airlines collectively took more than $12 billion in revenue from seating-related fees between 2018 and 2023.

What’s next?

The Biden administration is asking for public comment on its airline-consumer protections proposal as the possibility of these regulations becoming actual policy relies on the incoming Trump administration.

Tags: Airlines, Airport, Artificial Intelligence, Department of Transportation, Joe Biden, Money, Pete Buttigieg, U.S. Senate

[Karah Rucker]

THE BIDEN ADMINISTRATION IS MAKING A FINAL PUSH TO ESTABLISH MAJOR CONSUMER PROTECTIONS FOR AIRLINE PASSENGERS.

THE ADMINISTRATION ALREADY PUT A RULE IN PLACE REQUIRING AIRLINES TO PAY TICKET REFUNDS, BUT THIS NEW PROPOSAL GOES FURTHER … ALIGNING MORE CLOSELY TO EUROPEAN STANDARDS FOR AIRLINE COMPENSATION.

THE DEPARTMENT OF TRANSPORTATION ANNOUNCED PLANS THURSDAY … TAKING STEPS TOWARD REQUIRING AIRLINES TO PAY PASSENGERS WITH CASH, MEALS, AND LODGING IF THEIR FLIGHTS GET CANCELED OR SIGNIFICANTLY CHANGED DUE TO A PROBLEM WITH THE PLANE OR A COMPUTER OUTAGE.

THE PROPOSAL INCLUDES PAYMENTS FROM 200 TO 775 DOLLARS DEPENDING ON THE LENGTH OF A DELAY.

CURRENT REGULATIONS HAVE AIRLINES DECIDE HOW LONG A DELAY MUST LAST BEFORE ISSUING REFUNDS.

UNDER THE NEW PLAN … A SIGNIFICANT DELAY IS DEFINED AS LASTING AT LEAST THREE HOURS FOR DOMESTIC FLIGHTS AND SIX HOURS FOR INTERNATIONAL.

THE PROPOSAL WILL ALSO LIKELY INCLUDE FREE REBOOKING ON THE NEXT AVAILABLE FLIGHT IN ADDITION TO PROVIDING STRANDED PASSENGERS WITH MEALS AND HOTEL STAYS.

THE DEPARTMENT IS ALSO WEIGHING ALLOWING SMALL AIRLINES TO PAY LESS COMPENSATION THAN LARGE ONES.

TRANSPORTATION SECRETARY PETE BUTTIGIEG SAYS THE DEPARTMENT IS CONSIDERING NEW PROTECTIONS SO CLOSE TO THE END OF PRESIDENT JOE BIDEN’S TERM, BECAUSE THE AIRLINE INDUSTRY IS BREAKING RECORDS …

this launch is a process that I think will lead to more improvements for passengers.. There’s really two goals here.. Make sure those kinds of disruptions are less likely to happen in the first place and make sure you’re taken care of when you do.”

INDUSTRY TRADE GROUP ‘AIRLINES FOR AMERICA’ RESPONDED TO THE PROPOSAL SAYING IT WOULD DRIVE UP TICKET PRICES.

“IN THIS HIGHLY COMPETITIVE INDUSTRY, CARRIERS DON’T NEED FURTHER INCENTIVE TO PROVIDE QUALITY SERVICE. THIS PROPOSAL IS SIMPLY ONE IN A LONG STRING OF ILL-CONCEIVED AND RUSHED RULES FROM AN ADMINISTRATION INTENT ON REREGULATING THE U.S. AIRLINE INDUSTRY.”

THE MOVE FOLLOWS A SENATE HEARING WEDNESDAY ON THE MULTI-BILLION DOLLAR BUSINESS OF AIRLINE FEES – WHERE AIRLINES TALKED ABOUT IMPLEMENTING CUSTOMER SPECIFIC PRICING USING A-I AND ALGORITHMS… MEANING EVERYONE WOULD PAY A DIFFERENT PRICE FOR THE SAME SEATS ON THE SAME FLIGHT.

A CONGRESSIONAL REPORT OUT LAST WEEK SAYS THAT FIVE OF THE NATION’S LARGEST AIRLINES COLLECTIVELY TOOK MORE THAN 12 BILLION DOLLARS IN REVENUE FROM SEATING RELATED FEES BETWEEN 2018 AND 2023.

THE BIDEN ADMINISTRATION IS NOW ASKING FOR PUBLIC COMMENT ON ITS AIRLINE-CONSUMER PROTECTIONS PROPOSAL … AS THE POSSIBILITY OF THESE REGULATIONS BECOMING ACTUAL POLICY RELIES ON THE INCOMING TRUMP ADMINISTRATION.

FOR SAN – I’M LAUREN TAYLOR.

FOR ALL YOUR LATEST NEWS HEADLINES – DOWNLOAD THE STRAIGHT ARROW NEWS APP TODAY.