Overview

• The Transportation Department withdrew a proposed rule that never took effect which would have mandated cash compensation for carrier-controlled disruptions.
• The shelved plan detailed payments up to $300 for domestic delays of three to six hours and up to $775 for delays of nine hours or more.
• Airlines for America welcomed the reversal, arguing the mandate would raise fares, limit access for price-sensitive travelers, and complicate operations.
• Legal observers cited doubts about DOT’s authority to impose cash payments, noting a 5th Circuit ruling that rejected a separate fee-disclosure regulation.
• DOT said it is reviewing which cancellations require refunds and is weighing repeal of an existing rule requiring upfront disclosure of ancillary fees.