Money
Delayed baggage? Wifi not working? Big US push to refund airline passengers
Taking to the skies while your bags stay on the ground or being unable to connect to in-flight wifi may soon see you financially compensated in the US
The U.S. Transportation Department has released proposed new rules to require passenger airlines to refund fees for bags that are significantly delayed as well as issue money-back for services like onboard Wi-Fi that do not work.
The proposal, which will open for public comment for 60 days, came shortly after President Joe Biden signed an executive order to boost competition throughout the economy.
Biden’s new order also directs U.S. regulators to review airport slots and aviation market structure issues.
“it is our goal to have more competition in the airline industry.”
White House economic adviser Bharat Ramamurti said
Rules on the allocation of airport slots have massive ramifications for aviation competition and the market access for low-cost carriers.
Under existing rules within the United States, passengers are entitled to be compensated in the event that bags are lost, but not when delayed.
The new rules
Under the proposed rule, a “significantly delayed checked bag” is one not delivered to the passenger within 12 hours for domestic itineraries and within 25 hours for international itineraries.
The department estimates consumers could see $10.7 million to $11.4 million annually in refunded baggage fees and estimates carriers’ costs at around $4 million.