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USDOT Withdraws Biden-Era Plan Requiring Cash Compensation for Flight Delays

The agency says mandated payments would create unnecessary burdens, signaling a broader shift toward loosening airline consumer rules.

Overview

  • President Donald Trump’s Transportation Department formally ended the proposal on Friday after flagging a potential withdrawal in September.
  • The shelved plan would have required airlines to pay $200 to $300 for domestic delays of at least three hours and up to $775 for longer disruptions.
  • USDOT said it prefers to let carriers compete on service and compensation rather than impose new minimums that it argues would raise airline costs.
  • Democratic senators, including Richard Blumenthal, Maria Cantwell and Ed Markey, had urged the administration to keep the measure in place.
  • The department will pursue related deregulatory steps, including redefining what counts as a cancellation for refunds and revisiting ticket pricing, advertising and fee-disclosure rules, even as the EU, Canada, Brazil and Britain maintain delay-compensation regimes.