DOT's new refund rules elicit harsh airline response

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DOT's new refund rules elicit harsh airline response
Photo Credit: Mark Van Scyoc/Shutterstock

Airlines are pushing back against refund requirements finalized by the Department of Transportation (DOT) on April 24. The new rules are slated to take effect in late June. 

In a strongly worded statement, the Airlines for America (A4A) trade group rebuked the DOT, saying its rules will make air travel more expensive.

"Unnecessary regulatory rules issued without collaboration will lead to three things: confusion for consumers, reduction in choice and a decline in competition, which historically drives up prices," A4A said. "Very simply put, a one-size-fits-all approach is anticompetitive and anticonsumer."

Airlines are currently required to provide refunds upon request for flights they cancel or "significantly delay."

However, there has been no DOT definition of a significant delay. Now there will be. Domestic flights delayed by more than three hours will trigger a refund requirement and international flights delayed by more than six hours will do the same. 

A4A insinuated that the DOT is skirting its share of the blame when flights are delayed.

"Unfortunately, the FAA is short nearly 3,000 certified professional controllers. We encourage the DOT to focus on hiring and training initiatives that are desperately needed to help get qualified, trained controllers into the towers, especially amid record travel."

The new regulations stipulate several itinerary changes that will entitle airline customers to a refund. They include changes to the arrival or departure airport, the addition of a connection point to the itinerary, cases in which the customer is downgraded to a lower seating class, and when an aircraft change downgrades the plane's available amenities. 

Carriers will be required to proactively inform customers on canceled flights or significantly delayed flights that they are entitled to refunds, a rule designed to curtail a common airline practice of issuing credits in such situations to uninformed travelers.

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