Yahoo Finance Biden wants airlines to give you miles, vouchers or even cash if they strand you
President Biden and Transportation Secretary Pete Buttigieg are pushing for airline passengers to be compensated if they're stranded for reasons other than the weather, the latest effort from the White House to force changes to the flying experience in the face of widespread customer dissatisfaction.
Many airlines already offer refunds, hotel rooms, and meals, but federal officials want the carriers to go further.
Biden and Buttigieg unveiled a new push Monday that airlines provide customers with vouchers, miles or even cash when flights get canceled or significantly delayed by something within a carrier's control, like a mechanical issue.
"Your time matters, the impact on your life matters," President Biden said in a speech at the White House on Monday afternoon while standing in front of banners reading "Holding Airlines Accountable". He added that this is the first time in US history that such a far-reaching rule - which will formally be proposed later this year - has been put forward.
The rules are far from a certainty with the Department of Transportation rule-making process often taking months or years to play out. In the weeks to come, the Biden administration promises more details, including a more precise definition of what constitutes a “controllable cancellation and delay.”
Airlines for America, the industry's main representatives in Washington, responded by noting that about two thirds of flight cancellations in recent years have either been because of the weather or air traffic control outages.
"U.S. airlines have no incentive to delay or cancel a flight and do everything in their control to ensure flights depart and arrive on time—but safety is always the top priority," the group said in a statement. "Carriers have taken responsibility for challenges within their control and continue working diligently to improve operational reliability."
A new public pressure campaign
In addition to the new proposed rules, the Biden administration also announced Monday that it would be expanding a public pressure campaign on the airlines through its online tracker at FlightRights.gov. That tracker was set up last year to highlight which airlines were offering various amenities voluntarily.
On the issue of cancellation, the tracker currently shows that many airlines offer services like rebooking or hotel rooms when certain flights are canceled or delayed but no major airline offers cash compensation - the farthest reaching idea announced Monday.
Alaska (ALK) and JetBlue (JBLU) do offer things like travel vouchers or frequent flyer miles in the event of a controllable cancellation, according to the dashboard, while others do not.
In his remarks Sunday, Biden discussed how policies that mandate additional compensation already exist in places like Canada and the European Union, arguing that having the rules in place can lead to decreased flight delays overall.
"Guess what? It works," he said.
A White House focus on ‘the passenger experience’
Monday’s move is the latest from a White House that has elevated airline comfort to a key issue. It even warranted a mention in Biden’s State of the Union address earlier this year.
Additional moves in recent months include $1 billion for upgrading America’s airport terminals, an effort to prod airlines to ensure parents and children can sit together, and the release of a new bill of rights for disabled flyers.
The actions have add up, Buttigieg said during his own speech Monday. "In just over two years, this administration has delivered some of the most significant gains in airline passenger protections in decades," he said.
But, he added, airlines need to step up and "accept their fundamental responsibility."
A wave of cancellations during last year’s busy Memorial Day and the July Fourth travel weekends highlighted the issue of delays. Then the meltdown at Southwest Airlines (LUV) last winter further put a focus on how poor planning by airlines can lead to widespread inconveniences for travelers.
Airlines are reportedly staffing up ahead of this summer’s travel season, but the season is expected to put airlines to the test as the industry continues to grapple with things like an ongoing pilot shortage. Delta (DAL) CEO Ed Bastian, recently told Yahoo Finance “The outlook for summer is strong.”
While the proposed rules won't be in place this summer for any Delta flight delay compensation, the administration is clearly hoping to use public pressure and the threat of these new rules to prod airlines voluntarily avoid a repeat of recent incidents.
"Our economy depends on these airlines doing a good job," said Buttigieg Monday.
This post has been updated with additional developments.
Ben Werschkul is Washington correspondent for Yahoo Finance.
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