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Flight Cancellations

USDOT Proposes Passenger Compensation for Flight Delays Up to $775

The United States Department of Transportation (USDOT) has unveiled a sweeping proposal to require airlines to compensate passengers for flight delays caused by airline-related issues, such as maintenance problems or IT system failures. This marks a significant shift in consumer protections within the airline industry, which currently offers no mandated compensation for such delays.

Under the proposed rule, passengers would receive cash compensation depending on the length of the delay:

  • 3-6 hours: $200-$300
  • 6-9 hours: $375-$525
  • 9+ hours: $750-$775

The USDOT is also exploring whether smaller airlines should be subject to reduced compensation rates and whether passengers should be eligible for compensation if notified of delays or cancellations one to two weeks in advance.

Additional Passenger Protections for Flight Delays

The proposal includes two other key measures to bolster passenger rights:

  1. Rebooking at No Cost: Airlines would be required to rebook affected passengers on the next available flight, either on their own services or via codeshare partners, in cases of cancellations or delays exceeding specific thresholds:
    • 3+ hours for domestic flights
    • 6+ hours for international flights
    • Missed connections caused by delays
  2. Essential Services During Disruptions: Airlines would need to provide meals, lodging, and transportation in the event of significant delays or cancellations. The DOT is still determining the frequency and extent of meal and accommodation coverage.

The USDOT has opened a 60-day public comment period for stakeholders to review the proposals. However, the timeline coincides with a significant political transition. With President Donald Trump set to be reinaugurated after the comment period concludes, there is uncertainty about the future of the rule. Trump has previously opposed increased regulation, raising questions about whether the proposal will advance under his administration.

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