New U.S. Department of Transportation regulations to expand consumer protections against airlines charging steep fees, focusing in the manner of EU261 on providing full disclosure of travel costs before purchasing tickets and offering prompt cash refunds for cancelled or significantly changed flights.
The United States Department of Transport says it is addressing bait-and-switch tactics, that disguise the true cost of flights by advertising a low base fare that does not include all mandatory fees.
While the new DOT rules establish clear guidelines for flight cancellations and significant delays, they do not offer compensation but instead focus on ensuring passengers have the option to receive alternative travel arrangements or a full refund, leaving passengers responsible for adjusting travel plans and any additional expenses.
Unlike Europe, the DOT rules focus on providing passengers with alternative itineraries or cash refunds when flights are cancelled or significantly delayed, while the E.U. Regulation mandates rerouting passengers to the final destination “at the earliest opportunity” and offering additional amenities and compensation for delays or cancellations.
In scenarios such as flight cancelation or delays due to weather, the E.U. Regulation 261/2004 offers more extensive protections, including hotel accommodations, meals, transportation, and lump-sum cash compensation, compared to the basic rights provided by the DOT rules.
Transportation Secretary Pete Buttigieg emphasised the importance of upfront cost transparency for passengers and the necessity for airlines to refund money owed without requiring passengers to request it: “this is really about making sure that we create a better experience for passengers, and a stronger aviation sector in the United States, and end surprise junk fees which have become a significant revenue source for airlines and provide passengers with better cost information upfront and ensure timely cash refunds when necessary.”
Doug Mullen, the deputy general counsel at Airlines for America said “the amount of unwanted and unneeded information forced upon passengers” by the new policy would only cause confusion and frustration. Very few, if any, need or want this information, and especially when they are initially trying to understand schedule and fare options.”
