Dive Brief:
- The Department of Transportation is rolling back a plan to require airlines to compensate customers for flight cancellations or significant changes caused by the carriers themselves, according to a notice of withdrawal posted earlier this month.
- The DOT, under the Biden administration, launched the rulemaking process in December of last year. It proposed requiring airlines to provide passengers with cash compensation, free rebooking on the next available flight, meals, overnight lodging and related transportation expenses when the disruption is airline-caused.
- Consumer rights groups say the rollback hurts customer experience. “Experiencing flight delays and cancellations is extremely frustrating, and it is also expensive when you have to suddenly shell out hundreds of dollars for a hotel, transportation, meals, and rebooking fees,” Erin Witte, director of consumer protection for Consumer Federation of America, said in a press release.
Dive Insight:
Under the Biden administration and then-Transportation Secretary Pete Buttigieg, the Department of Transportation prioritized consumer protections that often benefited customer experience, from prompt cash refunds to upfront pricing.
The Trump administration has taken airlines’ concerns about regulations into consideration, however, and looked at rolling back federal consumer protections.
“Consistent with Department and administration priorities, the Department plans to withdraw the [Advanced Notice of Proposed Rulemaking],” the document announcing the withdrawal reads.
In May, Airlines For America, a lobby group for U.S. airlines, filed a 93-page request with the department that sought to cancel major consumer protections.
“This comes as no surprise under the current administration,” Katy Nastro, travel expert with Going, told CX Dive in a statement. “This proposed rule under the Biden administration was a long shot to begin with, and did provide hope for a time period that the U.S. would fall in step with Canada and Europe who have cash compensations for disruptions on top of new flights.”
Consumer rights groups say the withdrawal of the rulemaking is a step backwards.
But this doesn’t mean consumers are without protections. Last year, a final rule by the DOT requiring airlines to provide customers with automatic cash refunds for canceled or significantly delayed service went into effect. Airlines For America has proposed rolling back this rule, too, according to reporting by The Points Guy.
Airlines, too, have their own rules around what benefits they will provide when delays and cancellations occur, and good customer experience is a differentiator, Nastro said.
“With more people traveling than ever, even despite some softer months this year, airlines need to understand travelers most of the time have options and the option to fly with a carrier who provides assurances, especially during peak times can play into their decision to purchase more than they think,” Nastro said.
