The U.S. Department of Transportation (DOT) has unveiled a major initiative to enhance protections for air travelers affected by flight cancellations or significant delays caused by airlines.

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This Advance Notice of Proposed Rulemaking (ANPRM) seeks public feedback on new measures that could require airlines to compensate passengers and provide necessary services automatically.

Key Proposals by the DOT:

1. Cash Compensation for Airline-Caused Disruptions
   • Airlines may be required to pay passengers at least $200 in cash for flight disruptions caused by circumstances under their control, such as mechanical issues or IT failures.
   • A tiered compensation system is being considered:
     • $200–$300 for domestic delays of 3–6 hours.
     • $375–$525 for delays lasting 6–9 hours.
     • $750–$775 for delays exceeding 9 hours.
   • The DOT is exploring whether smaller airlines should have different compensation thresholds and whether compensation is needed if passengers are notified weeks in advance of a disruption.
2. Free Rebooking on the Next Available Flight
   • Airlines may be obligated to rebook passengers at no extra cost if a flight is canceled or delayed by at least 3 hours domestically or 6 hours internationally.
   • Rebooking options may include:
     • Flights operated by the airline or its codeshare partners.
     • Flights on other carriers with which the airline has a commercial agreement if no suitable options are available within 24 hours.
3. Provision of Meals, Lodging, and Transportation
   • Airlines may need to cover meals, overnight accommodations, and transportation for stranded passengers.
   • Minimum reimbursements could be established when services aren’t provided upfront, ensuring passengers can recoup costs even without submitting receipts, up to a defined limit.

The DOT’s proposals draw inspiration from consumer protection frameworks in countries like Canada, Brazil, the UK, and the European Union. Research suggests that EU compensation requirements have successfully reduced the frequency and length of delays, demonstrating the effectiveness of such measures.

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Passengers currently face numerous hurdles when seeking compensation or services, including vague policies, lack of upfront communication, and reliance on in-person requests at airports. The new rulemaking aims to close these gaps by establishing clear, enforceable standards for airlines.

Public input on the proposed measures will shape the final rules. The DOT hopes these changes will create a more accountable and passenger-friendly system, ensuring travelers are better supported during disruptions.

With these proposed rules, the DOT seeks to make airline travel more reliable and fair, setting a new standard for passenger rights in the United States.