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Biden Administration Proposing New Compensation Rule for Airlines



Source: AP
The U.S. Government wants to ensure that airlines help passengers who get stuck because of problems caused by the airline. They’re considering making a new law that says airlines have to pay for hotel rooms and meals if your flight has been delayed or canceled – something that already happens with airline companies in Europe.
The Transportation Department, led by Secretary Pete Buttigieg, has improved their Airline Customer Service Dashboard on FlightRights.Gov. This site displays a list of airlines that provide compensation options, such as cash, travel credits, vouchers, or frequent flier miles, to travelers who experience flight cancellations or delays caused by the airline.
“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.”
The top ten airlines in the US currently provide in-flight meals and free rebooking on their own airline, with nine committing to covering accommodations. However, a new regulation will soon require these services to be mandatory.
The new law would require airlines to compensate passengers for any airline-related delays or cancellations of three hours or more from the scheduled departure time. The compensation would be a refund for the ticket or a voucher for future travel. Airlines would also be required to provide meals or meal vouchers to delayed or canceled passengers. Additionally, airlines would be required to have timely customer service during and after widespread flight irregularities. This would include providing information about the delay or cancellation, rebooking passengers on other flights, and assisting with hotel accommodations and other travel arrangements.
According to ABC News, the new ruling is expected to be announced this week.