If an airline cancels your flight, remember that you are entitled to a full refund.
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The Biden administration unveiled two new rules Wednesday that will directly affect the millions of Americans who travel commercially each year. The first rule requires airlines to be more transparent about additional fees. The second rule requires airlines to issue cash refunds automatically, rather than in response to customer requests.
The different provisions of the new rules, issued by the Ministry of Transport, will be implemented according to different deadlines ranging from six months to two years.
“Passengers deserve to get their money back when an airline owes them – without the headaches or haggling,” Transportation Secretary Pete Buttigieg said in a press release about the new refund rule.
The rule requires airlines to automatically refund full money to passengers in several cases: when flights are canceled or significantly changed, when baggage return is significantly delayed, and when customers do not receive amenities at board like the Wi-Fi they paid for.
The other rule aims to eliminate what are called “surprise junk fees.”
“Airlines should compete to secure passengers’ business — not to see who can charge the most surprise fees,” Buttigieg said.
Airlines will be required to list and explain all additional charges “clearly, conspicuously and accurately” on their web platforms or when providing offline fares.
This Unwanted Fee Transparency Rule also includes a provision to eliminate “bait-and-switch discount tactics,” the practice of offering discounts that may appear to apply to the entire price of the flight, but which actually only apply to a smaller portion of the price.
The White House announcements Wednesday follow several aviation incidents involving Boeing plane malfunctions that have triggered regulatory investigations and forced major carriers like Southwest, Alaska Airlines and United to reassess their business expectations.
Last week, Buttigieg said the White House would partner with state prosecutors to expedite responses to customer complaints against airlines and ticketing agencies. Technically, only the federal government has the authority to enforce passenger protection, although state attorneys receive many reports of customer grievances.
Along with the finalized rules announced Wednesday, the White House is also proposing rules banning extra seat charges for parents trying to sit next to their children, making certain amenities mandatory and expanding accommodations for passengers in wheelchairs.
The new airline rules are the latest action in President Joe Biden’s broader battle against what the White House calls “corporate scams.”
“There are tens of billions of dollars of other unwanted costs throughout the economy, and I have asked my administration to reduce or eliminate them,” Biden said in 2022.
That directive has evolved into a multi-pronged crackdown on hidden fees from different government agencies targeting various industries, including banking, cable and financial products like retirement savings accounts.
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