Biden Administration's Airline Passenger Cash Compensation Review Faces Industry Opposition
Airlines for America (A4A), representing major carriers like Delta, American, and United, has urged the Trump administration to terminate an ongoing review regarding cash compensation for delayed passengers.
The review, initiated by the Biden administration, aims to explore the feasibility of requiring airlines to financially compensate passengers for disruptions resulting from their negligence. The proposed guidelines outline potential compensation ranging from $200 to $775 for delays exceeding three hours.
A4A contends that such a measure would not foster economic incentives but instead lead to increased ticket prices and potential flight cancellations. The group argues that airlines already offer automatic refunds for rebooked flights and provide assistance such as meals, hotel accommodations, and ground transportation for rebooked passengers.
Moreover, A4A maintains that the proposed regulations exceed the Department of Transportation's statutory authority. The group cites the administration's focus on airline accountability and passenger rights, including previous mandates for automatic cash refunds and penalties for excessive delays.
The Department of Transportation has not yet issued a formal response to A4A's request.