Topline
The Trump administration is getting rid of a Biden-era rule that sought to require streamlined refunds to passengers facing significant flight disruptions, according to a filing, scoring a win for airlines.
Key Facts
The Transportation Department said in the filing that it did not have the authority to implement the proposed Biden administration ruleset, saying the refund requirement “must be withdrawn.”
The department also argued airlines should be allowed to compete with each other on services and compensation to passengers without facing a federal requirement on refunds, saying forced compensation “would impose significant costs on airlines, and potentially consumers.”
“Airlines have strong incentives to take care of passengers during significant flight disruptions and already do so voluntarily,” the filing said.
Some consumer advocacy groups supported the Biden administration’s plan, arguing voluntary commitments from airlines to support passengers dealing with flight disruptions did not protect consumers well enough because airlines could remove the commitments or not inform passengers about them.
Supporters of the Biden-era plan also pointed out large U.S. airlines do not guarantee cash compensation for significant flight disruptions, saying regulated refunds would “incentivize competition and improve on-time performance,” according to Friday’s filing.
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What Flight Disruptions Did Biden’s Refund Plan Cover?
The rule entitled passengers to refunds for canceled or significantly changed flights, such as domestic delays lasting more than three hours, departures or arrivals from a different airport and increases in the number of connecting flights. The plan also included refunds for passengers’ checked bag fees if bags were not delivered within 12 hours of their domestic flight arriving at the gate. Refunds would also have been provided if airlines did not provide an extra service a passenger paid for, such as Wi-Fi, seat selection, or inflight entertainment.
