The Biden administration is working on new regulations requiring airlines to provide compensation and cover expenses for food and hotel rooms to stranded passengers, holding the airlines responsible for the travel disruptions. The White House in a statement revealed that the US Transportation Department seeks to ensure that passengers are protected against financial losses. The proposed regulation aims to enhance customer service to airline passengers.
The White House noted that airlines have been a critical partner in several key initiatives by the government, including addressing supply chain issues over the last couple of years. It noted that about a year ago, no major airline guaranteed any compensation beyond the price of the ticket if they caused a delay. "Now, 9 major airlines cover hotels, 10 cover meals, and 10 rebook for free. And that’s real savings for middle-class and working-class families," the statement reinstated.
Last year, the Transportation Department proposed a rule which when passed would require airlines to show the full ticket price upfront before purchasing it. "But we’re not stopping there. We know how frustrating delays, cancellations, and re-bookings are for travellers," the White House statement read.
Biden administration took two initiatives, firstly, the launch of a new dashboard called FlightsRight.gov created last fall to give travellers more transparency into airlines’ compensation policies. According to the statement, the administration has expanded the scope of the website to include airlines guaranteeing additional compensation such as cash, miles, or travel vouchers. Secondly, the administration will propose a "historic new rule" making it mandatory for all US airlines to compensate customers with meals, taxis, ride shares and rebooking when the company has caused a cancellation or significant delay. The White House statement read that passengers in Canada and the European Union are already getting such compensations.
