Iata has strongly objected to the proposed rule by DOT and the Biden Government that would require airlines to provide financial compensation in addition to their current care packages. The regulation is set to be put into effect later this year. Iata notes that the 10 biggest US airlines are already providing meals or cash vouchers in the event of extended delays, and 9 of them offer free hotel accommodation to passengers whose flights have been cancelled overnight.
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“Airlines already work hard to get you to your destination on time and do everything they can to minimise the impact of any delay,” said Iata director-general, Willie Walsh. “Managing delays can be very costly for airlines and passengers may even change carriers if they are dissatisfied with service levels. This regulation will not encourage airlines to provide compensation but will add an extra cost which is likely to impact ticket prices.” Iata also warns that the regulation could lead to unrealistic expectations among passengers, which are unlikely to be met.
Flight delays and cancellations are mostly due to weather, according to Iata’s release. Last year, air traffic controller shortages were a contributing factor, and they are a concern for 2023 as FAA has asked airlines to cut flight schedules in New York metropolitan areas. Other causes include runway closures, equipment failure, supply chain issues, and aircraft delivery delays.
There are also supply chain issues in the aircraft manufacturing and support sectors, and parts shortages that have little or no control over airlines but affect reliability. The DOT states that airlines will be compensated only for flights that are delayed and canceled for which the airline is responsible. However, research shows that such punishing regulations have no impact on flight delays and cancellations. The European Commission’s comprehensive review of EU261 (passenger rights regulation) published in 2020 showed a near-twice-digit increase in flight cancellations (from 67,000 flights in 2011 to over 131,700 flights in 2023) in 201. Walsh also pointed to the FAA and the ATC (Air Traffic Control) government enterprises as contributing factors to some of the delays.
Walsh stressed that aviation is an interdependent industry with numerous partners, each playing an important role in the efficient operation of the air transport system. Walsh said the Biden Administration should not focus on airlines in this proposal but should focus on ensuring full funding of the FAA, full staffing of the air traffic control staff, and completing the FAA’s decades-old FAA NextGen modernization program.
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