POTENTIAL PASSENGER COMPENSATION RULE FACES UPHILL BATTLE
November 13, 2024
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On October 8, 2024, A4A published data on a forthcoming DOT proposal which could require airlines to offer cash compensation to passengers for significantly delayed or cancelled flights. Currently, the proposal is working its way through the “pre-rule” stage at the Office of Management and Budget (“OMB”). The potential rule could raise costs for millions of passengers if implemented but DOT regulators laude the proposal as an expansion of airline passengers’ rights. Similar consumer protections exist in Europe and Canada but A4A’s findings demonstrate that such protections are unnecessary in the U.S. market. When evaluating on-time performance, A4A asserts that that U.S. airlines display “better on-time performance than their European and Canadian counterparts” while noting that significantly delayed or cancelled flights are often outside a carrier’s control (i.e., weather delays, air traffic abnormalities). If regulators were serious about improving air transportation for millions of passengers, A4A recommends abandoning the ill-suited proposal for one with more practical utility such as remedying the ongoing air traffic controller problem. It remains to be seen whether the battle lines will hold when DOT announces its highly anticipated passenger compensation rule.
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