The International Air Transport Association (IATA) has recently expressed its concerns over the proposed US passenger compensation rule, stating that it will increase expenses for airlines but fail to address the issue of flight delays.
The proposed rule, which was introduced by the US Department of Transportation (DOT), aims to increase compensation for passengers who are involuntarily bumped from flights or experience lengthy tarmac delays. Under the new rule, passengers who are bumped from a flight would be entitled to up to $1,350 in compensation, while those who experience lengthy tarmac delays would receive up to $775.
While IATA acknowledges the importance of compensating passengers for these types of disruptions, the organization argues that the proposed rule fails to address the root cause of flight delays, which is often due to factors outside of an airline’s control, such as weather conditions or air traffic congestion.
In a statement, IATA’s Director General and CEO, Alexandre de Juniac, said: “We support compensation for passengers who are denied boarding or experience lengthy tarmac delays. However, this proposal misses the mark by focusing on compensation for events outside of an airline’s control rather than addressing the root causes of delays.”
IATA also expressed concerns over the potential financial impact of the proposed rule on airlines. According to the organization, the increased compensation costs could result in higher ticket prices for passengers and reduced profitability for airlines.
In addition to its concerns over the proposed US passenger compensation rule, IATA has also been advocating for a more collaborative approach to addressing flight delays and disruptions. The organization has called for greater investment in infrastructure and technology to improve air traffic management and reduce congestion, as well as increased cooperation between airlines, airports, and governments to develop more efficient and effective solutions.
Overall, while IATA supports the goal of compensating passengers for flight disruptions, the organization believes that the proposed US passenger compensation rule falls short in addressing the underlying issues of flight delays and could have negative financial consequences for airlines and passengers alike.
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