The Department of Transportation has formally withdrawn a proposed rule that would have required airlines to pay passengers cash compensation for lengthy flight delays caused by factors within the carrier’s control. The notice, filed in the Federal Register, ends a Biden-era proposal that had capped potential payouts at $775 per passenger for delays exceeding three hours.
DOT cited an executive order on deregulation in explaining the withdrawal, arguing that Congress never explicitly authorized the agency to mandate cash payments for delays and that the prior administration had exceeded its authority in proposing the rule. Airlines and industry trade groups had opposed the plan since it was first floated.
Carrier groups welcomed the reversal, arguing that competitive pressure already pushes airlines to rebook or otherwise accommodate delayed travelers without a federal cash mandate. Consumer advocates countered that the withdrawal removes a meaningful financial incentive for airlines to avoid controllable delays tied to staffing or maintenance issues.
Existing passenger protections are unaffected by the withdrawal. Travelers whose flights are canceled or significantly changed still retain the right to a refund under current DOT rules, but there is no federal requirement for airlines to provide additional cash compensation for delays of any length going forward.
Sources: Fodor’s, Aviation24.be
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