The Department of Transportation on Wednesday proposed new protections for travelers, including requiring airlines to provide vouchers that don't expire to passengers unable to fly for pandemic-related reasons.
Why it matters: If enacted, the change would be one of the most extensive overhauls of travelers' rights and airline refund rules.
Details: The department is proposing various changes aimed at both U.S. and foreign air carriers and ticket agents.
- Under the proposed rules, passengers will be eligible for cash refunds if their flight is delayed by 3 or more hours for domestic itineraries or 6 or more hours for international flights — even if the ticket was purchased as non-refundable or if the delay was outside the airline's control.
- Airlines will issue vouchers with no expiration dates to passengers who can't travel due to COVID-19 or other communicable diseases. This includes if they're sick, if there's a stay-at-home order or if borders close.
- If the carrier or ticket agent received significant financial assistance from the government as a result of a public health emergency, they'll have to provide refunds instead of non-expiring travel vouchers or credits.
By the numbers: Taxpayers have given U.S. airlines $54 billion in COVID-19 government assistance, Reuters reported.
- American Airlines and Delta each received around $12 billion, and United Airlines got about $11 billion.
- The rule would only apply to airlines that receive new assistance after the proposal is finalized.
What they're saying: The department said it has been flooded with complaints about air travel services since the onset of the pandemic.
- “When Americans buy an airline ticket, they should get to their destination safely, reliably, and affordably,” Transportation Secretary Pete Buttigieg said in a statement Wednesday.
- “This new proposed rule would protect the rights of travelers and help ensure they get the timely refunds they deserve from the airlines.”
Meanwhile: The proposal outlined that airline representatives "cautioned that overregulation in this area may result in the elimination of that lower-priced fare product" during an Aviation Consumer Protection Advisory Committee meeting.
Where it stands: The proposal will be open for public comments for 90 days, including at an Aug. 22 virtual meeting.
- The Transportation Department will then weigh the comments before finalizing the proposal.