Biden has introduced new regulations for airlines mandating automatic cash refunds and banning unexpected fees.
The Biden administration unveiled two new regulations on Wednesday that will impact millions of Americans who travel by commercial airlines each year. The first rule mandates increased transparency regarding extra fees, while the second requires airlines to issue automatic cash refunds rather than waiting for customer requests.
These rules, issued by the Department of Transportation, will be rolled out over different timelines ranging from six months to two years.
Transportation Secretary Pete Buttigieg emphasized the importance of these changes, stating, “Passengers deserve to get their money back when an airline owes them — without headaches or haggling,” regarding the new refund rule. This rule stipulates that airlines must automatically refund passengers in cases such as flight cancellations or significant changes, delayed baggage returns, or failure to receive paid in-flight amenities like Wi-Fi.
Buttigieg also addressed the issue of surprise fees, stating, “Airlines should compete with one another to secure passengers’ business — not to see who can charge the most in surprise fees.” The second rule requires airlines to clearly and accurately list and explain all additional fees, including provisions to eliminate deceptive discount practices.
These announcements follow incidents involving Boeing plane malfunctions, prompting regulatory scrutiny and causing major carriers to reassess their operations.
The White House also plans to propose rules prohibiting extra seating fees for parents wishing to sit with their children and aims to make certain amenities mandatory while expanding accommodations for wheelchair users.
These airline regulations are part of President Biden’s broader efforts against what the White House terms “corporate rip-offs,” aligning with his directive to reduce or eliminate hidden fees across various sectors.
