Hold onto your seat belts, fellow patriots! It seems our friends in the airline industry are in for some turbulence, and it’s not the kind you can fix with a “fasten seatbelt” sign. The Department of Transportation is playing hardball with new passenger refund rules, and let’s just say the airlines’ request for a delay has been grounded faster than you can say “flight canceled.” But before we take off into the details, let’s remember why this matters: it’s about our rights as consumers and the government’s role in protecting them. So, prepare for takeoff as we navigate through this high-flying drama that could impact your next trip to the friendly skies.
The DOT’s Firm Stance
U.S. Transportation Secretary Pete Buttigieg has made it crystal clear that major airlines must comply with new passenger refund obligations passed by Congress in May. Despite pleas from the industry for more time, Buttigieg is not budging an inch.
We've been on a mission to deliver the biggest expansion in passenger rights in decades.
Our new airline regulation will put money right back in passengers' pockets while demanding more cost transparency from airlines. pic.twitter.com/2NDYwVslrW
— U.S. Department of Transportation (@USDOT) April 30, 2024
This hard-line approach comes on the heels of a 5th Circuit U.S. Court ruling that blocked new DOT airline fee disclosure rules. The Department seems determined to flex its regulatory muscles where it still can.
Airlines’ Technological Turbulence
Airlines for America (A4A), representing major carriers, argues that compliance with the new rules requires significant technological upgrades. They claim that developing, testing, and refining new systems will take considerable time.
“The new technology solutions necessary to comply with these requirements will necessitate thorough development, testing and refinement before successful deployment,” A4A explained in their appeal for more time.
The industry group went further, stating that airlines “do not have the technological means to issue and support vouchers and flight credits with a minimum travel validity period of five years” and “estimate that 12 months will be needed to achieve the required solution.”
Passenger Rights and Refunds
Buttigieg is adamant about protecting passenger rights, especially when it comes to refunds for canceled or significantly changed flights.
“Airlines must clearly and proactively inform passengers of their right to a refund whenever their flight is canceled or significantly changed,” he emphasized. “Cash refunds – not vouchers or credits – must be automatic for passengers when they are owed.”
The new rules also require flight credits to be valid for five years, a significant change that airlines claim they’re not yet equipped to handle.
Recent Disruptions and Investigations
The timing of this regulatory clash is particularly interesting given recent tech-related disruptions in the airline industry. A CrowdStrike software update caused system problems affecting several airlines, with Delta Air Lines bearing the brunt of the impact.
In response to Delta’s continued flight disruptions, the DOT launched an investigation. Buttigieg stated, “[The DOT] has opened an investigation into Delta Air Lines to ensure the airline is following the law and taking care of its passengers during continued widespread disruptions.”
With Delta canceling 3,500 flights in the wake of the outage, including 450 out of 669 canceled flights in a 24-hour period, the incident underscores the potential impact of technological issues on passenger rights and airline obligations.
Sources
- U.S. rejects airlines bid for more time on passenger obligations
- US rejects airlines bid for more time on passenger obligations
- US rejects airlines bid for more time on passenger obligations
- U.S. rejects airlines’ bid for more time on passenger rules
- House Passes Legislation to Improve Air Travel, Sending Bill to Biden’s Desk
- Refunds and Other Consumer Protections
Videos:
New FAA bill includes consumer protections for passengers:
What airline passengers need to know about the new automatic refund policy:
US rejects airlines bid for more time on passenger obligations;
US rejects airlines bid for more time on passenger obligations https://t.co/FgDsEVcy3c pic.twitter.com/Bp1Umm06JY
— Reuters Legal (@ReutersLegal) July 31, 2024