Biden, DOT aim to require airlines to compensate stranded passengers for meals, hotels, rebooking

Biden, DOT aim to require airlines to compensate stranded passengers for meals, hotels, rebooking



President Biden and Department of Transportation Secretary Pete Buttigieg announced plans to require airlines to compensate stranded passengers for controllable flight cancellations and delays at a press briefing Monday afternoon.

"The airline industry is a key part of our economy," said President Joe Biden, noting that airlines had been "critical partners" by "requiring employees to get COVID vaccines."

"Our top priority has been to get American air travelers a better deal," Biden also said, adding that American taxpayers had put $50 billion into the industry during the Trump administration to keep it afloat at the beginning of the pandemic in 2020.

Biden went on to provide some details on how the DOT's proposed rulemaking would benefit consumers. Though he mentioned covering taxi fare as part of the package, that particular detail is not mentioned in the DOT's announcement.

"When an airline causes a flight cancellation or delay, passengers should not foot the bill," said U.S. Transportation Secretary Pete Buttigieg in a statement prior to the press conference.

According to the agency's press release and newly expanded dashboard, few airlines currently provide passengers with compensation when passengers experience a delay or a cancellation caused by the airline.

The dashboard page provides three charts with green check marks and red Xs to indicate various airlines' commitments to fee-free family seating, controllable cancellations, and controllable delays. It is sortable by airline.

"This rule would, for the first time in U.S. history, propose to require airlines to compensate passengers and cover expenses such as meals, hotels, and rebooking in cases where the airline has caused a cancellation or significant delay," Secretary Buttigieg also said in the press release.

According to the DOT, the ten largest airlines now guarantee meals and free rebooking on the same airline. Nine guarantee hotel accommodations.

The proposed rulemaking would make passenger compensation and amenities mandatory "so that travelers are taken care of when airlines cause flight disruptions."

On top of the proposed rules, FlightRights.gov added a number of categories to its Airline Customer Service Dashboard to "give travelers more transparency about the types of compensation, if any, airlines currently guarantee when they are the cause of a cancellation or delay.

The newly added categories cover passengers who have to wait three or more hours for a flight from its scheduled departure time. Those categories include cash, travel credit/voucher, and frequent flyer miles.

What constitutes a "controllable cancellation or delay" will also be defined by the DOT in this rulemaking process.

Watch video below of today's press conference with President Joe Biden and Department of Transportation Secretary Pete Buttigieg discussing proposed rulemaking that would mandate compensation for passengers whose flights are canceled or delayed.

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Department of Transportation launches online dashboard to help travelers navigate flight delays and cancellations



In response to massive numbers of flight cancellations and delays, the Department of Transportation announced a new online dashboard for travelers on Thursday.

The Associated Press reported that the dashboard would allow travelers to compare refunds and compensation offered by carriers for flight delays or cancellations. The online dashboard will provide users with information about which domestic airlines offer the best options to ensure a smoother travel experience.

"Throughout 2022, Americans have experienced an unacceptable level of flight delays and cancellations," stated a Thursday press release issued by the Department of Transportation.

An estimated 150,000 flights have been canceled so far this year, reported FlightAware's reporting system. In addition, approximately 21% of all scheduled flights this year had been delayed.

"The dashboard provides air travelers a one-stop location to obtain information on the services and amenities they should receive from airlines if they experience delays or cancellations caused by something within the airline's control like a mechanical or staffing issue," wrote the DOT.

The new tool is meant to give users more control over their travel experience and a transparent way to check airline policies. It displays the various major airlines and their "commitments for controllable cancellations." The dashboard shows which carriers will provide free rebooking options on the same or other airlines, a meal when a cancellation results in a significant delay, and hotel accommodations for canceled flights.

The dashboard is designed to protect customers from interruptions due to staffing shortages and mechanical issues. It does not include airline policies related to weather disruptions or other uncontrollable events.

The Department of Transportation expressed hope that the new dashboard will encourage domestic airlines to compete and provide superior service to travelers.

Transportation Secretary Pete Buttigieg put pressure on airlines to improve their customer service and provide reasonable solutions to the mass cancellations and delays plaguing traveler plans.

"Passengers deserve transparency and clarity on what to expect from an airline when there is a cancellation or disruption," said Buttigieg. "This dashboard collects that information in one place so travelers can easily understand their rights, compare airline practices, and make informed decisions. The Department will continue to support passengers and to hold airlines responsible for adhering to their customer obligations."

\u201cFor the first time, @USDOT is providing consumers with a comparative look at what the top airlines have committed to when your flight is canceled or delayed because of an airline issue.\u201d
— Secretary Pete Buttigieg (@Secretary Pete Buttigieg) 1662048093

The DOT stated, "Secretary Buttigieg wrote a letter to airline CEOs informing them that DOT would publish the dashboard before Labor Day and urged the airlines to improve their customer service plans before the release. As a result, all but one of the ten largest U.S. airlines made significant changes to their plans to improve services provided to passengers when their flights are canceled or delayed because of an airline issue."

Lufthansa strike grounds over 1,000 flights, the latest airline to leave travelers stranded



Deutsche Lufthansa AG staff staged a one-day walkout on Wednesday that caused most flights out of Frankfurt and Munich to be canceled. The strikes also grounded some international flights.

The German trade union ver.di organized the strike to improve wages for ground staff and aircraft technicians impacted by rising inflation and ongoing aviation staff shortages. The union demanded a 9.5% wage increase for 20,000 workers.

In June, ver.di chairwoman Christine Behle explained that the German airline was at risk of losing staff, stating that "after three years of wage sacrifice, employees have been hit particularly hard by the high inflation rate."

Trade union warns of future strikes

Negotiations between ver.di and Lufthansa began at the end of June, and since then, the airline said it agreed to a 5.9%-14.8% increase for workers.

After meeting for two rounds of negotiations, Lufthansa's head of media relations, Martin Leutke, stated that the strike was "completely unnecessary" and "completely exaggerated."

A spokesperson for the trade union explained, "Lufthansa did not make an adequate offer in the first two rounds" and that employees need to demand more in the third round of negotiations.

Navigating a tight labor market

Airlines have struggled to keep up with the demanding post-lockdown summer travel season and industry-wide worker shortages. Lufthansa stated that it would attempt to rebook flights for passengers, but resources are limited.

Because Lufthansa is short on airport staff, the company recommends that those impacted by the cancellations call to rebook.

Chief officer of human resources and infrastructure at Lufthansa, Dr. Michael Niggemann, stated, "It affects our passengers in particular, who are impacted during the peak travel season. And it is putting an additional heavy strain on our employees in an already difficult phase for air traffic."

The airline anticipates another 646 flights will be canceled Wednesday out of Frankfurt and 330 out of Munich. Cancellations are expected to continue through Friday.

Lufthansa is the latest airline affected by a wave of staff strikes. Just last week, Scandinavian Airlines (SAS) came to an agreement with the pilot unions, ending a 15-day walkout that impacted over 350,000 passengers.

Worldwide flight cancellations have become an ongoing issue for those looking to travel. Airlines blame a combination of factors, including the surge in post-lockdown travel, staff shortages, and inclement weather.

Rep. Chip Roy and Sen. Lindsey Graham hoped to alleviate the staff shortage crisis by introducing a bill that would increase the mandatory retirement age of pilots from 65 to 67. The Monday press release warned that "nearly 14,000 qualified U.S. pilots will be forced to retire over the next five years."

\u201c"Americans are now experiencing flight delays and cancellations on an unacceptable scale due to a worsening pilot shortage."\n\nRep Roy's new bill with @LindseyGrahamSC would alleviate the crisis by raising the mandatory pilot retirement age:\n\nhttps://t.co/xCyKnsDN0b\u201d
— Rep. Chip Roy Press Office (@Rep. Chip Roy Press Office) 1658772279

U.S. senators are calling for Transportation Secretary Pete Buttigieg and the Department of Transportation to take action and protect passengers.

Sen. Bernie Sanders stated in a June press release that prices for tickets rose 38% while airlines experienced a 50% increase in delays and an 18% increase in cancellations.

\u201cThe airline industry got $50 billion in taxpayer money in its time of need. What did Americans get in return? Disruptions, delays, and cancellations.\u201d
— Bernie Sanders (@Bernie Sanders) 1656694910

Sen. Elizabeth Warren and Sen. Alex Padilla wrote to the DOT that they have "the authority to take meaningful actions to hold airlines accountable for avoidable delays and cancellations."

The two senators accused the airlines of being ungrateful for the billions in taxpayer bailout assistance provided to them during COVID lockdowns. They stated that "major airlines have reciprocated by dramatically increasing ticket prices and reaching new lows in their treatment of travelers."

Until a solution is found, passengers will continue to pay the consequences of significant worldwide flight delays and cancellations.

Thousands of flights delayed or canceled this holiday weekend, glitch may cause 12,000 American Airlines flights to not have pilots in July



A computer glitch has caused an estimated 12,000 American Airlines flights to not have pilots in the month of July. There have also been thousands of delays or cancellations for this Fourth of July travel weekend.

Newsweek reported, "On Friday, American Airlines alone had to delay nearly 1,000 flights, with the industry overall suffering over 1,100 cancellations and nearly 11,000 delays. The issue leveled off somewhat on Saturday, with only around 3,000 flights being canceled."

NBC News reported on Saturday, "More than 12,000 July flights lacked either a captain, first officer or both, after pilots dropped assignments, the Allied Pilots Association said earlier."

ABC News reporter Gio Benitez wrote on Twitter, "An overnight computer glitch has allowed thousands of American Airlines pilots to drop their scheduled flights. The union says at least 12,000 flights are now without pilots starting tomorrow through the end of July."

According to Benitez, there was a similar situation that happened in 2017, "The airline offered double pay to get the pilots back in the air. No such offer has been made just yet."

American Airlines said in a statement, "We have become aware of a technical issue with our Trip Trade with Open Time System (TTOT). We understand these are important tools for our pilots and are working as quickly as possible. We will provide updates throughout the day as we learn more."

American Airlines claimed that there would be no impact on the holiday weekend operation, according to Benitez.

The Daily Mail reported, "Pilots typically go by month-to-month schedules on the Preferential Bidding System. In most cases, staff with seniority and override more junior staff's requests for certain routes or days off."

Transportation Secretary Pete Buttigieg wrote on Twitter, "When deciding whether to accept miles, it’s helpful to know their value, which varies, but often is estimated at 1 to 1.5 cents per mile. For example, my connecting flight got canceled last night. At first, the airline offered 2500 miles, which I estimate is worth about 30 bucks. But I claimed the refund for the canceled portion instead, and it worked out to be $112.07."

Staffing shortages and major thunderstorms have already interrupted commercial airline flight service this summer.

"Certain jobs cannot be filled quickly, nor should they be when it's as critical as, you know, pilots," William McGee – a senior fellow for aviation at American Economic Liberties Project – told the Fort Worth Star-Telegram. "And so now we have this shortage. There's just no way it's going to be fixed this summer."