US proposes airline cash payouts for flight disruption

To would require airlines to compensate passengers at least $200.

It comes after rules came into force requiring airlines to give customers an automatic refund without delay when their flight is canceled or ‘significantly delayed and if their checked bag is lost or delayed.

The DOT proposed cash compensation for delays of three hours or more, and would require airlines to rebook passengers ‘for free on the next available flight, cover meals, overnight lodging, and related expenses.’

This would occur for disruptions that were avoidable by the airline.

“Now that we are on the other side of the pandemic and air travel is breaking records, we must continue to advance passenger protections,” Transportation Secretary Pete Buttigieg said.

“This action we’re announcing is another step forward where the flying public is better protected and passengers aren’t expected to bear the cost of disruptions caused by airlines.”

Compensation would depend on the actual length of delay.

It would pay $200 to $300 for domestic delays of at least three hours, $375 to $525 for delays of at least six hours and $750 to $775 for delays of at least nine hours.

However, this move is unlikely to get passed.

There is a 60-day comment period on the proposal although before it ends a new President will be in the White House.

Airlines will feel confident this won’t be taken forward with the new administration.