34 states ask Biden administration to go further on toughening flight cancellation regulations

Thirty-four bipartisan state attorneys general urged the Department of Transportation (DOT) to go further in its proposed strengthening of airline refund regulations.

Transportation Secretary Pete Buttigieg has aimed to strengthen consumers’ ability to receive refunds when airlines delay or cancel flights by proposing a new regulation for the industry, but the attorneys general said in a comment on the rule last week that the proposal doesn’t go far enough.

“We appreciate the Department’s work to address the problem of flight cancellations and significant delays. While the [rule] proposal contains some positive measures, we believe it should be strengthened,” the attorneys general wrote.

Buttigieg’s proposal would clarify that airlines must refund passengers who choose not to travel because their domestic flight is delayed by at least three hours, the airline changes the departure or arrival airport or makes certain other adjustments.

The attorneys general said the three-hour rule could cause airlines that already voluntarily guarantee refunds for lesser delays to loosen their policies.

They also argued that Buttigieg’s department’s rule should require airlines to advertise and sell only flights they have adequate personnel to fly and support, and that DOT should perform regular audits of airlines to ensure their compliance.

“As written, the [proposal] includes no provision that would correct this practice and that would prevent airlines from advertising and selling tickets for flights that they cannot reasonably provide,” the attorneys general wrote in their comment.

The push for stronger rules comes after consumer complaints against airlines soared this year as the industry recovered from the coronavirus pandemic.

The resurgence in travel demand caused chaotic travel operations at times, especially during holiday weekends over the summer, with many airlines reporting staffing shortages and other issues.

The attorneys general urged Buttigieg to require airlines to provide partial refunds to passengers for cancellations that result in them taking a rescheduled flight that is later, longer or otherwise less valuable than their original purchase.

A DOT spokesperson said the department is reviewing the more than 5,200 complaints received on the proposal.

“Since the pandemic, DOT is taking action like never before – helping hundreds of thousands of travelers get over a billion dollars of refunds back, issuing the highest amount of fines for consumer protection violations in the Department’s history, increasing transparency of consumer rights, pushing airlines to guarantee hotels and meals when they are at fault for the cancellations, and enhancing consumer protections with proposed rulemakings,” the spokesperson said.

“However, there is more work to be done and the Department has begun discussions with State AGs on the benefits of States and DOT coordinating more closely to protect consumers,” they added.

The attorneys general further argued that the DOT should prevent airlines from imposing “inappropriate limitations” on credits and vouchers they offer because of cancellations, like rapid expiration dates and restrictions on how they can be redeemed.

They also took aim at Buttigieg’s department for what they view as a lack of sufficient partnership with state officials in responding to consumer complaints, asking the DOT to create a framework to address concerns the attorneys general bring forward.

“In our experience, the USDOT has yet to develop the ability to respond quickly enough to or coordinate effectively with our offices,” they wrote.