The Trump administration will drop a Biden-era U.S.
Department of Transportation proposed rule that would have required airlines to
offer travelers cash compensation and other amenities when flights were
canceled or significantly delayed, according
to Reuters.
In a document
posted to a U.S. General Services Administration website, the Trump
administration indicated it would withdraw the notice of proposed rulemaking, filed in
December 2024, “consistent with Department and administration
priorities.”
The December
2024 proposed rule would have required airlines to pay passengers cash
compensation, rebook them for free on the next available flight, and cover
meals, overnight lodging and related transportation expenses when a disruption
is caused by the airline, such as for a mechanical issue.
The proposal at the time was criticized by industry lobbying
group Airlines for America, which noted carriers already provide automatic
refunds for passengers who choose not to be rebooked and said the proposed rule
would “drive up ticket prices, make air travel less accessible for
price-sensitive travelers and negatively impact carrier operations.”
A4A in a Thursday hailed the Trump administration’s decision
to drop the rule, saying in a statement that “we are encouraged by this
Department of Transportation reviewing unnecessary and burdensome regulations
that exceed its authority and don’t solve issues important to our customers. We
look forward to working with DOT on implementing President Trump’s deregulatory
agenda.”
The A4A Deregulatory Wish List
DOT in April, a few months after Trump’s return to the
president, issued
a request for public comment on ideas to reduce regulations and repeal
rules, guidance or requirements after Trump ordered that for every new
rule, regulation or guidance document a federal agency puts forward, it
“must identify at least 10 existing rules, regulations, or guidance
documents to be repealed.”
A4A in May replied to DOT’s public comment request with a
93-page document detailing numerous proposed and in-force consumer
protections that, according to airlines, should be abandoned.
These included but were not limited to rules that would require
airlines to keep families with children under the age of 13 seated together on
a flight as well as requirements to display total fares, inclusive of all taxes
and fees, at the beginning of the fare search and booking process. A4A in late
2024 filed a lawsuit against the DOT on the latter issue.
The comments document also addressed such issues as proposed rules to display on-time performance metrics for flights during the
booking process and prescriptive requirements specific to traveler accessibility
and handling of wheelchairs. A4A’s rationale for many of its objections to
pending and in-force regulations was the comparative cost to airlines to
implement the requirements versus what the group considers the minimal benefit that could be delivered
to consumers.
A4A members also took DOT to task on regulatory overreach,
challenging a number of proposed and newly implemented rules of the Biden
administration as “onerous and burdensome.”
A4A represents Alaska Airlines, American Airlines, Delta Air
Lines, JetBlue, Southwest Airlines, United Airlines, Hawaiian Airlines and cargo
carriers Atlas Air, FedEx and UPS.
The group in a public statement in February said it was “thrilled”
with president Trump’s appointment of Sean Duffy to lead DOT. Duffy in 2019 was
hired by lobbying firm BGR Government Affairs after serving in Congress. In 2020 the Partnership for Open Skies, which included American, Delta and United as members, hired BGR and Duffy to lobby for US Open
Skies policy. It is not clear if the administration will take any other steps in line with A4A’s deregulatory wish list.