Automatic Refunds To Protection From Junk Fees— What New Rules For Airlines In US Could Have For Flyers

According to the US Transportation Department, the customers are expected to save $543 million annually in excess airline fees.

Passengers checking in at the US Airways counter at Atlanta Hartsfield Jackson International Airport in Atlanta, Georgia.

Source : Getty

The US Transportation Department on Wednesday finalised new rules requiring upfront disclosure of airline fees, mandates for quick automatic cash refunds for canceled flights or significantly delayed flights, along with delayed baggage or inoperative services like onboard Wi-Fi, news agency Reuters reported.

 

The department had been working on these rules for nearly three years. According to the department, the customers are expected to save $543 million annually in excess airline fees.

 

These rules will require airlines and ticket agents to tell consumers clearly about baggage or change and cancellation fees.

'Airlines Drag Their Feet On Refunds & Rip People Off With Junk Fees': Biden

Over the last two years, President Joe Biden had been consistently criticising the airline industry. Biden, who is due to contest the general elections later this year in November, said on Wednesday that very often airlines drag their feet on refunds and rip people off with junk fees, which are charges that are not disclosed to customers ahead of purchase. 

 

The US President further argued that the new mandate will ensure that the passengers receive the refund when they're owed and remain protected from the surprise junk fees, the report noted.

What Are The New Rules?

As per the new rules, the airlines and ticket agents are required to disclose extra service fees along with the full fare and the first-time fare. The schedule information will also be displayed online.

 

The newly introduced refund rules apply to canceled flights by carriers irrespective of the reason, including if it is because of weather. However, passengers are not entitled to refunds if they travel on another flight and are rebooked.

 

The airlines will now be required to inform that consumers seats are guaranteed and passengers are not required to pay seat selection fees. Carriers have also been prohibited from advertising promotional discounts that do not include the mandatory carrier-imposed fees.

 

The Biden government has also mandated the airlines to refund baggage fees in case the bags are not delivered within 12 hours of domestic flights arriving and 15 to 30 hours in case of international flight arrivals. 

 

The customers are eligible to receive refunds for services that do not work or are not provided, under the new rules.

 

The department is requiring airlines and ticket agents to inform consumers upfront about the fees they charge for checked bags, for changing a reservation, a carry-on bag,or cancelling a reservation. This will ensure consumers' protection  from surprise fees when they purchase tickets from airlines or ticket agents, including online travel agencies.

 

Under the new rules, USDOT is also requiring airlines to issue credits or vouchers to consumers restricted from travel due to a serious communicable disease.

 

Airlines will be rewuired to promptly and automatically issue refunds if flights are canceled.

 

Transportation Secretary Pete Buttigieg stated that the passengers are supposed to get refunds for canceled flights, but the new rules clearly state that they must get cash within seven days instead of vouchers.

 

"No more defaulting to vouchers or credits," Buttigieg stated at an event at Reagan National Airport outside Washington, Reuters reported.

 

Airlines for America, a trade group representing major carriers including American Airlines, Delta Air Lines, and United Airlines stressed that the carriers "offer transparency and vast choice to consumers from first search to touchdown. U.S. airlines are committed to providing the highest quality of service, which includes clarity regarding prices, fees, and ticket terms," the report noted.

 

Earlier in May, Biden stated that USDOT was drafting new rules, requiring airlines to compensate passengers with cash refunds for significant flight delays or cancellations when the carriers are responsible.

 

However, even after a year, USDOT has not issued a formal proposal.