Trump Administration to Drop Biden’s Proposed Rules for Air Pax Compensation

The US Department of Transportation has officially withdrawn a proposed rule introduced under President Biden that would have required airlines to compensate passengers in cash for significant flight disruptions caused by the carriers themselves.

The withdrawn plan, introduced under President Biden’s DOT, opened for public comment in February. 

The proposed rules aimed to align U.S. pax rights with stronger protections in the EU and the UK. It called for a range of compensation based on the length of delays, from $200 for delays of three hours to $775 for delays of nine hours or longer. 

It would also have required airlines to provide meal and hotel reimbursements, as well as free rebooking for stranded passengers, even on competing airlines,. 

US carriers vehemently opposed the rule, arguing it would raise costs and fares. Trade association Airlines for America issued a statement urging the Biden administration to reconsider enacting such a rule when it was first announced. 

The US Department of Transportation says the proposed rules are being withdrawn to be “consistent with Department and administration priorities.”

In the statement, the group claimed that most flight delays (66%) in the U.S. were attributable to factors outside the airlines’ control, such as severe weather and airspace management issues. It attributed 33.7% of delays to carriers, but noted that airlines were taking steps to address operational issues.