Regulatory

US Department of Transportation extends airline passengers’ rights

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US Department of Transportation extends airline passengers’ rights
The US Department of Transportation (US DOT) has announced a number of rules to protect airline passengers’ rights, with the Biden-Harris administration requiring carriers to provide transparency about ancillary fees and cancellation costs, as well as mandating prompt and automatic cash refunds where due. Airlines and ticket agents will be required to tell consumers upfront the fees charged for a first or second checked bag, a carry-on bag, or for changing or cancelling a reservation; a rule estimated to save consumers over $500 million annually in hidden fees. “Airlines should compete with one another to secure passengers’ business – not to see who can charge the most in surprise fees,” commented US Transportation Secretary Pete Buttigieg. DOT Bureau of Transportation Statistics data indicates that ‘extra fees have become more complex over time and continue to confuse passengers, requiring additional action by the Department’. Airlines will also be required to provide automatic cash refunds to passengers when owed, requiring a prompt payment (to the full amount, including taxes and fees) by the original form of payment. ‘Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation,’ states the US DOT. Both of these measures were selected for consideration by the DOT in the Executive Order on Promoting Competition and ‘build on the historic steps the Biden-Harris Administration has already taken to expand consumer protections, promote competition, and protect air travellers’. Under the GOT’s flight rights online dashboard, all 10 major US airlines now guarantee free rebooking and meals, with nine guaranteeing hotel accommodation following a significant delay or cancellation. Additionally, the DOT is also pursuing rules that would propose family seating fees, propose to make passenger compensation and amenities mandatory, and expand the rights for passengers who require the use of wheelchairs.