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The Biden administration is proposing to compensate passengers for flight disruptions

Even as the Biden administration prepares to leave office in more than a month, they are moving the ball forward on new rules that would not provide compensation to passengers when a flight is canceled, changed or delayed and it is the airline’s fault.

The US Department of Transportation issued an advance notice of proposed rules Thursday that would eventually require carriers to compensate passengers at least $200 when their flight is delayed for three hours or more, in cases where the delay is considered the airline’s responsibility.

Passengers may be eligible for higher levels of compensation if there is a long-term disruption.

The proposed rules, if finally finalized, will bring the rights of US passengers closer to those offered to consumers on the other side of the Atlantic under the regulation known as EU261.

“This action we’re announcing is another step toward a better era of commercial air travel — one where the flying public is better protected and passengers aren’t expected to face the costs of airline disruptions,” said Transportation Secretary Pete Buttigieg. a statement announcing the news.

Here’s the catch, though: Thursday’s notice of proposed rulemaking only begins the process of considering potential passenger compensation rules. At a minimum, the public will get 60 days to weigh in before the DOT takes any further action.

60 days from now, it will be early February — and the nation will be weeks into the administration of President-elect Donald Trump.

That means the incoming Trump administration will, ultimately, have the final say on how — and how — to proceed.

Related: Airlines face Capitol Hill upset over rising surcharges and ‘bag bonuses’

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Proposed compensation rules

The DOT’s proposed compensation rules would call for airlines to pay between $200 and $300 to passengers whose trips are interrupted by three to six hours on a domestic flight. This can apply in cases where there is a delay, cancellation, or when the airline makes a major change to the traveller’s itinerary.

Ronald Reagan Washington National Airport (DCA). SEAN CUDAHY/THE POINTS GUY

Passengers experiencing disruptions between six and nine hours can be compensated between $375 and $525, with payments of at least $750 for passengers whose journeys are delayed nine hours or more.

The DOT also announced that it is considering legislation to protect passengers from meals, unexpected hotel stays and lower travel costs if they are stranded—and stricter rules for rebooking passengers in the event of disruptions.

These compensation requirements will apply in the case of “manageable” disruptions – in other words, flight problems that are considered the airline’s responsibility (think maintenance and technical outages, but not bad weather).

Building on existing protections

Many major US airlines have already promised to pay for meals, unplanned hotel stays and airport transportation in the event of “manageable” delays or cancellations. Those guarantees are detailed in an organizational dashboard developed by the DOT in recent years. But when those protections are provided — and whether — ultimately remains at the airline’s discretion, the department said.

New measures under consideration would strengthen those passenger protections into fully enforceable DOT regulations.

Notably, this rulemaking process comes just weeks after new, tougher reimbursement requirements pushed by the DOT under Buttigieg, and passed by Congress, went into effect.

DAVID SLOTNICK/POINTS MAN

However, those requirements are more focused on how quickly, and easily, passengers receive refunds for canceled or delayed flights – if they are owed. In general, the law did not change many of the criteria that determine a passenger’s eligibility for reimbursement in the first place.

Under DOT policy, passengers are owed a refund for the unfilled portion of their trip if their flight is canceled or significantly delayed, and they choose not to travel instead of accepting a rebooking.

The airline industry is responding

A trade group for major US airlines said carriers already “provide automatic refunds if the passenger chooses not to be rebooked – regardless of whether the major delay or cancellation is within the carrier’s control.”

“Authorizing additional cash compensation—beyond what airlines already offer—would increase ticket prices, make air travel more affordable for price-conscious travelers and negatively impact airline operations,” Airlines for America said in a statement to TPG.

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