Tag Archives: air travel

Biden Administration, Consumer Protection, News & Photo Features

Biden-Harris Administration Announces Rules to Deliver Automatic Refunds and Protect Consumers from Surprise Junk Fees in Air Travel

Newly finalized rules will mandate automatic, cash refunds for cancelled or significantly delayed flights and save consumers over half a billion dollars every year in airline fees 

Biden-Harris Administration announced final rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees. © Karen Rubin/news-photos-features.com

WASHINGTON – Building on a historic record of expanding consumer protections and standing up for airline passengers, the Biden-Harris Administration announced final rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees. These rules will significantly expand consumer protections in air travel, provide passengers an easier pathway to refunds when owed, and save consumers over half a billion dollars every year in hidden and surprise junk fees.
 
The rules are part of the Biden-Harris Administration’s work to lower costs for consumers and take on corporate rip-offs. President Biden signed an Executive Order on Promoting Competition in 2021 that encouraged DOT to take steps to promote fairer, more transparent, and competitive markets.

Today, the Biden-Harris Administration announced rules that require airlines to provide automatic cash refunds to passengers when owed and protect consumers from costly surprise airline fees. The President released the below statement and video.


“Our department just issued rules to protect people from hidden airline fees and to require airlines to give passengers automatic cash refunds when owed,” said Transportaiton Secretary Pete Buttigieg. “No more having to fend for yourself and jump through hoops to get your money back—airlines will have to automatically do this. This is about airlines treating passengers better, and it will save people more than half a billion dollars. Avoiding unwanted, expensive, unnecessary surprise airline fees.”

“Too often, airlines drag their feet on refunds or rip folks off with junk fees,” President Biden stated. “It’s time Americans got a better deal. Today, my Administration is requiring that airlines provide automatic refunds to passengers when they’re owed, and protect them from surprise fees.

“We all know what it’s like when airlines drag their feet on refunds or surprise us with junk fees. That’s why today my Administration is holding airlines accountable and bringing costs down for American families. This is just one part of my Administration’s plan to prevent companies from playing the American people for suckers. It matters,” Biden stated.


 Requiring Automatic Cash Airline Refunds
The first rule requires airlines to promptly provide passengers with automatic cash refunds when owed because their flights are cancelled or significantly changed, their checked bags are significantly delayed, or the ancillary services, like Wi-Fi, they purchased are not provided.
 
Without this rule, consumers have to navigate a patchwork of cumbersome processes to request and receive a refund — searching through airline websites to figure out how to make the request, filling out extra “digital paperwork,” or at times waiting for hours on the phone. Passengers would also receive a travel credit or voucher by default from many airlines instead of getting their money back, so they could not use their refund to rebook on another airline when their flight was changed or cancelled without navigating a cumbersome request process.
 
DOT’s rule makes it simple and straightforward for passengers to receive the money they are owed. The final rule requires refunds to be:
 

  • Automatic: Airlines must automatically issue refunds without passengers having to explicitly request them or jump through hoops.
  • Prompt: Airlines and ticket agents must promptly issue refunds within seven business days of refunds becoming due for credit card purchases and 20 calendar days for other payment methods.
  • Cash or original form of payment: Airlines and ticket agents must provide refunds in cash or whatever original payment method the individual used to make the purchase, such as credit card or airline miles. Airlines may not substitute vouchers, travel credits, or other forms of compensation unless the passenger affirmatively chooses to accept alternative compensation.
  • Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees.
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  • Protecting Against Surprise Airline Junk Fees
  • Secondly, DOT is requiring airlines and ticket agents to tell consumers upfront what fees they charge for checked bags, a carry-on bag, for changing a reservation, or cancelling a reservation. This ensures that consumers can avoid surprise fees when they purchase tickets from airlines or ticket agents, including both brick-and-mortar travel agencies or online travel agencies.
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  • The rule will help consumers avoid unneeded or unexpected charges that can increase quickly and add significant cost to what may, at first, look like a cheap ticket. Extra fees, like checked baggage and change fees, have been a growing source of revenue for airlines, while also becoming more complex and confusing for passengers over time. In total, thanks to the final rule, consumers are expected to save over half a billion dollars every year that they are currently overpaying in airline fees.
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  • DOT’s rule ensures that consumers have the information they need to better understand the true costs of air travel. Under the final rule, airlines are required to:
  • Disclose baggage, change, and cancellation fees upfront: Each fee must be disclosed the first time that fare and schedule information is provided on the airline’s online platform — and cannot be displayed through a hyperlink.
  • Explain fee policies before ticket purchase: For each type of baggage, airlines and ticket agents must spell out the weight and dimension limitations that they impose. They must also describe any prohibitions or restrictions on changing or cancelling a flight, along with policies related to differences in fare when switching to a more or less expensive flight.  
  • Share fee information with third parties: An airline must provide useable, current, and accurate information regarding its baggage, change, and cancellation fees and policies to any company that is required to disclose them to consumers and receives fare, schedule, and availability information from that airline.
  • Inform consumers that seats are guaranteed: When offering an advance seat assignment for a fee, airlines and ticket agents must let consumers know that purchasing a seat is not necessary to travel, so consumers can avoid paying unwanted seat selection fees.
  • Provide both standard and passenger-specific fee information:  Consumers can choose to view passenger-specific fee information based on their participation in the airline’s rewards program, their military status, or the credit card that they use — or they can decide to stay anonymous and get the standard fee information.
  • End discount bait-and-switch tactics: The final rule puts an end to the bait-and-switch tactics some airlines use to disguise the true cost of discounted flights. It prohibits airlines from advertising a promotional discount off a low base fare that does not include all mandatory carrier-imposed fees.

 
DOT’s Historic Record of Consumer Protection Under the Biden-Harris Administration
Both of these actions were suggested for consideration by the DOT in the Executive Order on Promoting Competition and build on historic steps the Biden-Harris Administration has already taken to expand consumer protections, promote competition, and protect air travelers. Under the Biden-Harris Administration, DOT has advanced the largest expansion of airline passenger rights, issued the biggest fines against airlines for failing consumers, and returned more money to passengers in refunds and reimbursements than ever before in the Department’s history. 

  • DOT launched the flightrights.gov dashboard, and now all 10 major U.S. airlines guarantee free rebooking and meals, and nine guarantee hotel accommodations when an airline issue causes a significant delay or cancellation. These are new commitments the airlines added to their customer service plans that DOT can legally ensure they adhere to and are displayed on flightrights.gov.
     
  • Since President Biden took office, DOT has helped return more than $3 billion in refunds and reimbursements owed to airline passengers – including over $600 million to passengers affected by the Southwest Airlines holiday meltdown in 2022.
     
  • DOT has issued over $164 million in penalties against airlines for consumer protection violations. Between 1996 and 2020, DOT collectively issued less than $71 million in penalties against airlines for consumer protection violations.
     
  • DOT recently launched a new partnership with a bipartisan group of state attorneys general to fast-track the review of consumer complaints, hold airlines accountable, and protect the rights of the traveling public.
     
  • In 2023, the flight cancellation rate in the U.S. was a record low at under 1.2% — the lowest rate of flight cancellations in over 10 years despite a record amount of air travel
     
  • DOT is undertaking its first ever industry-wide review of airline privacy practices and its first review of airline loyalty programs

 
In addition to finalizing the rules to require automatic refunds and protect consumers from surprise fees, DOT is also pursuing rulemakings that would: 

  • Propose to ban family seating junk fees and guarantee that parents can sit with their children for no extra charge when they fly. Before President Biden and Secretary Buttigieg pressed airlines last year, no airline committed to guaranteeing fee-free family seating. Now, four airlines guarantee fee-free family seating, as the Department is working on its family seating junk fee ban proposal.
     
  • Propose to make passenger compensation and amenities mandatory so that travelers are taken care of when airlines cause flight delays or cancellations.
     
  • Expand the rights for passengers who use wheelchairs and ensure that they can travel safely and with dignity. The comment period on this proposed rule closes on May 13, 2024.

Travelers can learn more about their protections when they fly at FlightRights.gov. Consumers may file an airline complaint with the Department here.

Biden Administration, Federal Budget, Infrastructure, News & Photo Features

FACT SHEET: As President Biden Announces Historic Transportation Investments, Extreme House Republicans Try to Slash Infrastructure Funding

This fact sheet from the White House details Biden’s historic investments in transportation, while Congressional Republicans are using the threat of a government shutdown  to slash infrastructure funding.

President Biden wants to invest in America’s infrastructure, including passenger rail, but Republicans would cut funding that would impact making critical investments in improving the safety and efficiency of the Nation’s rail system and airspace, risking increased delays and cancellations due to outages and lost opportunities to improve safety, and undermine the Federal Aviation Administration’s ability to promote innovations that would lower noise and emissions, improve efficiency, and help the industry keep flight costs under control © Karen Rubin/news-photos-features.com

Thanks to President Biden’s leadership, the United States is making historic investments in infrastructure needs so people and goods can get where they need to be safely, quickly, and conveniently. Today, the President is announcing $16.4 billion for passenger rail projects from his Bipartisan Infrastructure Law, which makes the largest investment in passenger rail since the creation of Amtrak.
 
While the Biden-Harris Administration is trying to make travel faster, safer and more reliable, House Republicans are trying to make it slower, harder, and less safe.
 
House Republicans are turning their backs on their communities—both urban and rural—and undermining American infrastructure with an appropriations bill that guts funding for Amtrak and makes draconian cuts to transportation and infrastructure programs. As outlined in a Statement of Administration Policy, the President would veto this extreme bill that would slash support for infrastructure in communities across the country, while at the same time adding billions to the deficit with give-aways to wealthy tax cheats.
 
Extreme House Republicans’ bill to defund infrastructure is just the latest example of their brutal cuts that would hurt the American people—following failed attempts to cut investments in infrastructure in March, May, June, and September and to eliminate hundreds of border patrol officers and tens of thousands of Head Start slots for kids. Rather than putting forward these devastating cuts, House Republicans need to follow the lead of the Senate and get to work on a bipartisan funding agreement—and act immediately on the Administration’s supplemental funding requests for urgent national security and domestic needs.
 
Extreme House Republicans’ draconian infrastructure defunding bill would:

  • Severely reduce Amtrak service and undermine critical maintenance work by slashing Amtrak funding by $1 billion. This reduction in funding would require Amtrak to reduce most, if not all, long-distance services, reduce certain Northeast Corridor regional train frequencies, and reduce or defer nearly 400 capital projects across the country. The Northeast Corridor is the most heavily traveled rail corridor in the United States, supporting 800,000 trips per day in a region that represents 20 percent of U.S. Gross Domestic Product.
     
  • Cut transit programs across the country with an 85% cut to the Capital Investment Grant program. This critical program funds projects that provide transformative benefits for communities across the Nation by expanding convenient and accessible transportation options—while also reducing greenhouse gas emissions and improving air quality.
     
  • Fail to make critical investments in improving the safety and efficiency of the Nation’s airspace, including by funding National Airspace System technology $500 million below the President’s Budget request, risking increased delays and cancellations due to outages and lost opportunities to improve safety.
     
  • Cut aviation research funding by over 20 percent, which would undermine the Federal Aviation Administration’s ability to promote innovations that would lower noise and emissions, improve efficiency, and help the industry keep flight costs under control.

 
The same extreme bill includes deep cuts to housing programs, which would:

  • Result in 20,000 fewer affordable homes being constructed, rehabbed, or purchased in communities across the Nation due to a nearly 70% cut to the HOME Investment Partnerships Program at the Department of Housing and Urban Development.
     
  • Put 78,000 children at greater risk of lead exposure due a rescission of over $564 million for programs that mitigate housing-related risks of lead poisoning and other illnesses and hazards to lower income families, especially children.
Biden Administration

$600 Million in Refunds Returned to Airline Passengers Under DOT Rules Backed by New Enforcement Actions

Frontier Airlines was one of the airlines fined by the US Department of Transportation for extreme delays in providing refunds to passengers © Karen Rubin/news-photos-features.com

The U.S. Department of Transportation (DOT) announced historic enforcement actions against six airlines, which collectively paid $600 million to people who were owed a refund due to a canceled or significantly changed flight. These fines are part of DOT’s ongoing work to ensure Americans receive the refunds they are owed from airlines. Since the beginning of the COVID-19 pandemic, DOT has received a flood of complaints from air travelers about airlines’ failures to provide timely refunds after they had their flights canceled or significantly changed. 

“When a flight gets canceled, passengers seeking refunds should be paid back promptly. Whenever that doesn’t happen, we will act to hold airlines accountable on behalf of American travelers and get passengers their money back.” said U.S. Transportation Secretary Pete Buttigieg. “A flight cancellation is frustrating enough, and you shouldn’t also have to haggle or wait months to get your refund.” 

In addition to the more than $600 million in refunds airlines have paid back, the Department announced today that it is assessing more than $7.25 million in civil penalties against six airlines for extreme delays in providing refunds. With today’s fines, the Department’s Office of Aviation Consumer Protection has assessed $8.1 million in civil penalties in 2022, the largest amount ever issued in a single year by that office. A majority of the assessed fines will be collected in the form of payments to the Treasury Department, with the remainder credited on the basis of payments to passengers beyond the legal requirement. The Department’s efforts have helped lead to hundreds of thousands of passengers being provided with more than half a billion dollars in required refunds. The Department expects to issue additional orders assessing civil penalties for consumer protection violations this calendar year. 

The fines assessed today and required refunds provided are: 

  • Frontier – $222 million in required refunds paid and a $2.2 million penalty 
  • Air India – $121.5 million in required refunds paid and a $1.4 million penalty 
  • TAP Portugal – $126.5 million in required refunds paid and a $1.1 million penalty 
  • Aeromexico – $13.6 million in required refunds paid and a $900,000 penalty 
  • El Al – $61.9 million in required refunds paid and a $900,000 penalty 
  • Avianca – $76.8 million in required refunds paid and a $750,000 penalty 

All of the consent orders are available at www.regulations.gov, docket number DOT-OST-2022-0001. 

Under U.S. law, airlines and ticket agents have a legal obligation to refund consumers if the airline cancels or significantly changes a flight to, from and within the United States, and the passenger does not wish to accept the alternative offered. It is unlawful for an airline to refuse refunds and instead provide vouchers to such consumers.  

The fines announced today are one of the many steps the Department is taking to protect consumers. Below are additional actions DOT has taken: 

  • During the summer, the Department rolled out a new airline customer service dashboard to help consumers determine what they are owed when a flight is cancelled or delayed because of an airline issue. Previously, none of the 10 largest U.S. airlines guaranteed meals or hotels when a delay or cancellation was within the airlines’ control, and only one offered free rebooking. However, after Secretary Buttigieg called on airlines to improve their service and created this dashboard, nine airlines now guarantee meals and hotels when an airline issue causes a cancellation or delay and all 10 guarantee free rebooking. The Department will continue to work to increase transparency so Americans know exactly what the airlines are providing when they have a cancellation or delay. 
     
  • The Department’s proposed rule on Airline Ticket Refunds, if adopted, would: 1) require airlines to proactively inform passengers that they have a right to receive a refund when a flight is canceled or significantly changed, and 2) define a significant change and cancellation that would entitle a consumer to a refund. The rule would also 3) require airlines to provide non-expiring vouchers or travel credits when people can’t travel because they have COVID-19 or other communicable diseases; and 4) require airlines that receive significant government assistance in the future related to a pandemic to issue refunds instead of non-expiring travel credits or vouchers when passengers are unable or advised not to travel because of a serious communicable disease. The Department invites the public to submit comment on this rulemaking by December 16, 2022. The Department’s Aviation Consumer Protection Advisory Committee will publicly deliberate on the Department’s proposed rule on Airline Ticket Refunds and decide on recommendations to make to the Department at a virtual meeting on December 9, 2022. To register and attend this virtual meeting, please use the link: https://usdot.zoomgov.com/webinar/register/WN_V2zwVF3RQfuoOkyYFVqvdA. 
     
  • The Department has proposed a rule that would significantly strengthen protections for consumers by ensuring that they have access to certain fee information before they purchase their airline tickets. Under the proposed rule, airlines and travel search websites would have to disclose upfront – the first time an airfare is displayed – any fees charged to sit with your child, for changing or cancelling your flight, and for checked or carry-on baggage. The proposal seeks to provide customers the information they need to choose the best deal. Otherwise, surprise fees can add up quickly and overcome what may look at first to be a cheap fare. DOT encourages members of the public and interested parties to submit comments by December 19, 2022. 

The Department has proposed a rule to refund passengers for services they paid for that aren’t actually provided (e.g., broken WiFi). 

For information about airline passenger rights, as well as DOT’s rules, guidance, and orders, the Department’s aviation consumer website can be found at: https://www.transportation.gov/airconsumer.