The Trump administration announced on Thursday that it would abandon a plan from the Biden era that aimed to mandate airlines to reimburse passengers with cash, accommodations, and meals for flight cancellations or schedule changes caused by the airline itself.
This proposed rule was intended to align U.S. policy more closely with European consumer protections for airline travelers. It was introduced last December during the final weeks of then-President Joe Biden’s administration, thus its future was decided by his Republican successor.
The Transportation Department under President Donald Trump stated in a document released on Thursday that their decision to discard the proposed rule aligns with the “Department and administration priorities.” The Trump administration has been keen on rolling back or altering federal regulations they consider to be wasteful or overly burdensome.
The industry trade group Airlines for America, which includes airlines such as United, Delta, and Southwest, supported the Trump administration’s decision.
“We are pleased with this Department of Transportation’s review of regulations that are unnecessary and burdensome, which surpass its authority and don’t address issues crucial for our passengers,” the group stated on Thursday.
Airlines currently offer various levels of customer service when they are responsible for flight cancellations or major delays, but travelers typically have to request assistance at the airport, and airline commitments don’t have the force of federal regulations.
But the proposed rule sought compensation starting at $200 when a flight is canceled or significantly delayed because of a mechanical problem with the plane or an airline computer outage. Compensation as high as $775 was proposed for delays of nine hours or more.
Carriers fiercely opposed it. In a public comment submitted this summer, Spirit Airlines said the rule threatened to increase operating costs for airlines and drive up ticket prices for passengers.
The budget carrier filed for Chapter 11 bankruptcy protection last week for the second time in a year. Spirit quickly followed that announcement with news that it planned to suspend operations next month in about a dozen cities.
“There is no free lunch,” Spirit said. “If every time a flight has to be cancelled due to, say, an aircraft maintenance issue, airlines were required to pay each affected passenger $300 plus hotel and meals, there would be a perverse incentive to cancel flights preemptively at any hint of trouble.”
Biden’s Transportation Department was also considering free rebooking on the next available flight, including flights on rival airlines, as well as meals and lodging when passengers are stranded overnight.
