US DOT Proposes Passenger Rights Rules, Compensation for Cancels and Delays

Will the US follow Europe and Canada in establishing passenger rights regulations that require airlines to pay compensation for delayed or canceled flights? The Department of Transportation published initial guidance for just such a scheme this week, preparing for comments from the public and, most certainly, eventual lawsuits over whether it can impose such rules.

While the proposed terms are generally stated as questions – the Department is looking for feedback in this phase of the effort – the general gist of the plan is for passengers to be provided compensation, reimbursement, alternate flight arrangements, and other considerations as appropriate during their travels if a flight experiences a significant delay or cancellation that is “controllable” by the carrier.

Under the proposed rule passengers would be entitled to food and lodging, plus potentially cash compensation depending on the duration of a delay. For domestic flights the payout would start at three hours and $300, increasing to $525 at six hours and $750 after nine hours. International trips would see similar numbers, though the comp would only kick in at six hours.

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The proposed rules are required by Section 512 of the 2024 FAA Act, signed into law earlier this year. It requires the Department to “direct all air carriers providing scheduled passenger interstate or intrastate air transportation to establish policies regarding reimbursement for lodging, transportation between such lodging and the airport, and meal costs incurred due to a flight cancellation or significant delay directly attributable to the air carrier.”

For rebookings the DOT is considering a requirement that airlines use alternate carriers where delays would exceed 24 hours. That rule appears, at least initially, to only apply where “the airline has a commercial agreement, interline or codeshare, to transport the airline’s passengers” with another airline. For U/LCCs that do not have such interline agreements that requirement likely could be skipped, still leaving those travelers disadvantaged.

What is Controllable?

Defining the terms is critical in any set of rules like this. For the DOT, understanding which events are “controllable” or not matters very much. As currently proposed, the term would include “cancellations or delays to be those due in whole or in part to any circumstance within the control of the airline.” The proposal continues, with the recommendation that it “apply if a delay or cancellation involves any factors or event within the control of the airline, including its operating partner, and their employees, subcontractors, or other persons working on their behalf.”

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Separately, the DOT notes that it has a list of delay codes airlines use for other data gathering, including the following which are to circumstances within air carrier control:

• Aircraft cleaning
• Aircraft damage (except bird strikes, lightening/hail damage)
• Airport curfew
• Awaiting the arrival of connecting passengers or crew
• Awaiting alcohol test
• Awaiting gate space
• Baggage loading
• Cabin servicing
• Cargo loading
• Catering
• Computer outages involving carrier equipment
• Crew legality (pilot or attendant rest)
• Damage by hazardous goods
• Engineering inspection
• Public health
• Flight paperwork
• Fueling
• Gate congestion
• Government forms not properly completed (INS, FAA, Agriculture)
• Ground equipment out of service
• Hot brakes restriction
• Last minute passenger
• Late mail from post office
• Late crew
• Lavatory servicing
• Maintenance
• Medical emergency
• Out of service aircraft
• Oversales
• Positive passenger baggage match
• Passenger services
• Potable water servicing
• Pre-flight check
• Ramp congestion (blocked by another aircraft under carrier’s control)
• Ramp service
• Removal of unruly passenger
• Revised weight sheet
• Shortage of ramp equipment
• Slow boarding or seating
• Snow removal (when it is a carrier ramp service function)
• Stowing carry-on baggage
• Weight and balance delays

Additionally, the Department suggests airline employee strikes are a controllable irregularity “because the Department believes airlines are best capable of addressing or mitigating such delays and cancellations through effective labor management.”

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Implementation of such a rule would be a boon for travelers, just like it has proven to be in Europe. Airlines will, of course, protest it as expensive government overreach and promise higher fares as a result. That was not, however, the outcome in Europe as competition kept the market sane.

Also, odds it survives legal challenges seem slim, despite the recent Congressional mandate to implement such a policy.