The US Department of Transportation (DOT) has issued new rules requiring all airlines using US airports to refund passengers for cancelled flights and “significantly” delayed flights.
On April 24, Pete Buttigieg, the US Transportation Secretary, announced that airlines must provide automatic cash refunds within days of their cancelled flight or delays.
“Under the Final Rule, US and foreign air carriers must provide prompt automatic refunds and ticket agents must provide prompt refunds upon request when airlines cancel or significantly change their flights and consumers do not accept the alternatives offered,” reads the summary of the Final Rule – Refunds and Other Consumer Protections on the DOT’s website.
The new rules say airlines will still be able to offer alternative flights or travel credits to compensate for these delays, but passengers have the right to decline these options in favour of cash.
Under current regulations, airlines can determine the duration of a delay that warrants a refund, according to independent.co.uk. However, the new rules set by the DOT say that delays of three hours and upwards for domestic flights and six hours and upwards for international flights qualify as significant delays.
“For consumers who are unable or advised not to travel as scheduled on flights to, from, or within the United States because of a serious communicable disease, the Department is requiring that carriers provide travel vouchers or credits that are transferrable and valid for at least five years from the date of issuance,” reads the 272-page document detailing the Final Rule.
In addition, the new regulations extend to refunds on checked bag fees if luggage isn’t delivered to passengers within 12 hours for domestic flights or within 15 to 30 hours for international flights. Similarly, passengers will be entitled to refunds for fees such as seat selection or Internet connection if the corresponding services are not provided by the airline.
The DOT’s Final Rule also mandates that airlines and ticketing agents disclose upfront fees for services such as checked and carry-on bags, cancelling or changing reservations, and seat selection. Disclosing these fees is expected to save consumers over US$500 million (R9,5 billion) annually, says the DOT.
While the DOT’s move has been welcomed by many, the US Travel Association has raised several concerns about the implications of enforcing the Final Rule.
The Final Rule document reads: “The US Travel Association, an organisation representing various components of the US travel industry, including some ticket agents, opposed the proposals on refunds due to airline cancellation and significant change, arguing that the proposals do not address the root causes of flight delays and cancellations and would have unintended consequences of higher costs for travel and reduced options for consumers.”
Independent.co.uk reports that the new rules will be implemented over the next two years.
