Large airlines encourage Trump's administration to abandon passenger compensation review


By David Shepardson

Washington (Reuters) – US Major Airlines on Tuesday asked the US Department of Transport to abandon a review launched by the Biden Administration on whether carriers should be required to pay compensation to passengers over disruption to flying.

He urged Airlines for America, a trade group representing American Airlines, Delta Air Lines, United Airlines, and others, Trump's administration to end the review in December to take comments on whether US airline companies should provide Cash to compensate for carrier- caused disturbance as required to make them in the European Union and Canada.

“Airlines do not need further incentive to provide a quality service,” the group wrote, arguing that USDOT has no legal authority and that the requirement would significantly boost the costs of airlines and hike ticket prices.

The International Air Transport Association representing airlines worldwide criticized the idea saying that required compensation programs “have become wealth transfer equipment that has cost airlines billions of dollars with no meaningful reduction in aviation disturbance.”

Spirit Airlines said the idea was so extreme “to encourage carriers to re-evaluate in proceeding with flights that should have been delayed or canceled further when potential safety-related concerns exist.”

USDOT in December sought comments on whether airlines should be required to pay $ 200- $ 300 for a at least three-hour domestic delays, $ 375- $ 525 for a six-hour delay, and $ 750- $ 775 for a nine-hour delay.

The then transport secretary, Pete Buttigian, said in December that compensation rules for delays “would change the economic motivation in a way that motivates airlines to do more.”

In May 2023, President Joe Biden said his administration within months would write rules that require airlines to compensate passengers for disruption flights.

Aviation companies have to pay passengers for canceled flights, but are not required to compensate customers for delay.

Main carriers are committed to paying for meals, guest stays and other expenses when causing significant flight disturbances.

Last month, the US Court blocked the rule of 2024 Biden Administration which required the disclosure of airlines service fees in advance, saying USDOT had not complied with procedural rules.

(Reported by David Shepardson; Edited by Bill Berkrot)



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