Overview
- DOT issued a notice Friday formally withdrawing the Biden-era airline delay compensation proposal, with publication in the Federal Register expected Monday.
- The scuttled plan would have required payments of $200–$300 for domestic delays of at least three hours and up to $775 for longer waits, applying only to delays within an airline’s control.
- The department cited “unnecessary regulatory burdens” and a preference for competition over federal minimums, while the filing also questioned DOT’s authority to impose such requirements.
- Airlines and industry groups backed the withdrawal, arguing compliance could cost more than $5 billion and lead to higher fares, whereas consumer advocates urged keeping standardized payouts.
- DOT indicated it may revisit other rules from the prior administration, including fee disclosure requirements, refund and cancellation definitions, and ticket pricing and advertising standards.