New Federal Rule Shrinks Airline Compensation Requirements Starting Next Week

Passengers flying this holiday season may find themselves with fewer avenues of redress when flights go wrong and they are left stranded. Starting next Monday, a new Department of Transportation rule will reclassify 10 categories of flight disruptions, moving them out of the “airline-controlled” bucket and into a new exemption list under the Federal Aviation Administration Reauthorization Act of 2024. The result: airlines will no longer be obligated to offer compensation like hotel stays or meal vouchers when these specific issues cause delays or cancellations.Currently, airlines must provide certain assistance, such as lodging or food vouchers, when a disruption is deemed within their control. The new rule removes that requirement for the following scenarios: unscheduled maintenance, medical emergencies, unruly passenger removals, cybersecurity attacks, government system failures, aircraft cleaning following a passenger death, baggage system outages caused by third parties, extreme-weather damage, overheated brakes from emergency procedures, and airport closures due to volcanic ash or wind shear.The reauthorization act of 2024 was a broad bipartisan law, which passed the House by a 377-26 margin. Signed into law by President Biden in May 2024, it aimed at modernizing air traffic infrastructure, addressing staffing shortages, and updating passenger rights. With its imminent implementation, the executive senior vice president of Fareportal, Tom Spagnola, said flyers should expect new frustrations with air travel. “There is more of a burden on the consumer, for sure,” he told Washington, D.C.’s ABC7 News. Mr. Sagnola noted that while some changes relate to passenger safety, airlines also stand to benefit financially. He recommended that passengers ask airlines directly about rebooking options, alternative carriers, and refund eligibility and to understand their rights and advocate for themselves. A litigation attorney and founder of The Wright Law Firm, Jamie E. Wright, told Fodor’s Travel that travelers should take screenshots of messages from the airline that declare the reason for any delay. “If they tell you ‘operational reasons,’ don’t accept that,” and push for more details, he said. Katy Nastro of Flighty recommends booking morning flights, which “on average has a 20 percentage point higher on-time arrival rate” compared to later departures, giving airlines more time to manage maintenance and aircraft swaps, Fodor reported. She also pointed to travel credit cards as an underused safeguard, noting they “usually come with decent ‘trip disruption’ insurance that can cover unexpected expenses like a hotel night stay.”With the reports of impending changes, the Department of Transportation pushed back this weekend on claims that airlines were no longer required to offer lodging, meals, or other assistance to passengers when flights are delayed or cancelled.“When airlines are responsible for a delay or cancellation, they have to provide compensation,” the department’s rapid response team wrote, adding that under Transportation Secretary Sean Duffy, “DOT will always stand up for passengers by holding airlines accountable and fixing the air travel experience.”Despite the rollback, one key protection remains intact: passengers are still entitled to a refund for significant delays, defined as more than three hours for domestic flights or six hours for international flights, regardless of the cause. However, accepting alternative compensation such as a meal voucher or rebooking may forfeit a passenger’s right to that refund later.Airlines also retain the option to voluntarily offer compensation beyond what’s legally required, though travel experts caution not to expect it.

New Federal Rule Shrinks Airline Compensation Requirements Starting Next Week

New Federal Rule Shrinks Airline Compensation Requirements Starting Next Week

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