
(StraightShooterNews.com) – Considering the potential consequences of such government overreach, the Harris-Biden Department of Transportation (DOT) is imposing new regulations on airlines, which force them to issue refunds for flight delays.
Transportation Secretary Pete Buttigieg suggested this new rule, which adds another layer of bureaucracy to the already struggling airline industry.
The DOT’s new refund rule, now in full effect, mandates that airlines provide refunds to passengers if flights are canceled or delayed by more than three hours for domestic flights or six hours for international flights.
Under the new regulations, airlines must process refunds automatically without passengers needing to request them.
This one-size-fits-all approach needs to consider the complex nature of airline operations and the various factors that can contribute to delays, many of which are beyond an airline’s control.
Moreover, the regulation specifies strict timelines for refunds: seven days for credit card purchases and 20 days for other payment forms.
Airlines must refund the full, unused value of the ticket to the original form of payment, which could potentially increase ticket prices as airlines try to offset the costs of these mandatory refunds.
“Passengers deserve to get their money back when an airline owes them – without headaches or haggling,” Transportation Secretary Pete Buttigieg said in a statement when the regulation was announced this spring.
He added, “Our new rule sets a new standard to require airlines to promptly provide cash refunds to their passengers.”
The policy also covers “significantly changed” flights, such as changes in airports, connections, or class of service.
While this could be a consumer win, this broad definition could potentially be abused, leading to unnecessary refunds and further financial strain on airlines.
Additionally, the new mandates extend to baggage fees and in-flight services. Passengers are now entitled to refunds for checked bag fees if luggage is delayed beyond 12 hours domestically or 15-30 hours internationally.
Airlines must also refund fees for services like in-flight Wi-Fi or seat selection if they were non-functional during the flight.
While these provisions may seem beneficial on the surface, they could lead to increased base fares as airlines attempt to recoup potential losses from these mandatory refunds.
This could hurt budget-conscious travelers who rely on lower fares and are willing to forgo certain amenities.
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