The Trump administration is killing a Biden-era proposal that would have required airlines to pay passengers up to $775 in cash for significant travel disruptions within carriers’ control.
The Transportation Department is officially withdrawing the cash compensation rule, which was introduced about a year ago by the Biden administration. In addition to cash compensation, the rule would have guaranteed meals, lodging, some ground transportation and other necessities for travelers delayed three hours or more.
In a document filed on Friday in the Federal Register, the Transportation Department said that federal law did not authorize the agency to require reimbursements or compensations for flight disruptions. The withdrawal is set be published in the register on Monday.
The department said in the document that it would instead continue to allow airlines to “compete on the services and compensation that they provide to passengers.”
Airlines have long resisted the rule, emphasizing that they believed it exceeded the Transportation Department’s authority and would ultimately result in higher fares. Airlines for America, a trade association, said that airlines already provide some relief for inconvenienced passengers.
“A4A carriers provide automatic refunds for significant delays and cancellations if a passenger chooses not to be rebooked, and they have competitive policies regarding reimbursements for food, transportation and lodging for cancellations and significant delays within a carrier’s control,” a spokeswoman said.
Passenger rights advocates argued that the rule would ensure a base level of care for air travelers and incentivize airlines to keep flights on time. There is precedent for this type of rule; under European Union regulations, passengers can receive up to 600 euros, or nearly $700, for certain lengthy delays and cancellations.
Last month, a group of 18 Democratic senators sent a letter to the Transportation Department urging it to keep Biden-era passenger protections in place. Cash compensation was a “common-sense proposal,” they said, adding that airlines should be on the hook for unanticipated costs incurred by travelers affected by lengthy delays and cancellations.
“By canceling this rule-making, the department is actively forgoing an easy solution to foster consumer confidence and address the problem of unaffordable travel for many families,” they added.
The reversal of the cash compensation rule is part of a broader push to undo a large number of passenger protections enacted by the Biden administration, said William McGee, a senior fellow for aviation at the American Economic Liberties Project, a progressive-leaning nonprofit. Airlines have sued the Transportation Department over rules that have already gone into effect, including one expanding the rights of disabled travelers and another requiring clearer disclosure of hidden fees.
“There’s not a regulation that they don’t either want to weaken or eliminate,” Mr. McGee said. “When something goes wrong, how are you protected?”
Karoun Demirjian contributed reporting.
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Christine Chung is a Times reporter covering airlines and consumer travel.
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