H.R. 5556: Flight Refund Fairness Act

This bill, known as the Flight Refund Fairness Act, aims to enhance the requirements surrounding refunds for airline tickets when flights are canceled or significantly delayed. The current legislation allows for refunds, but the proposed changes will set more specific timelines and conditions for how and when these refunds should be handled.

Key Provisions

• Transfer of Funds: The bill mandates that if a flight is canceled or significantly altered, the airline must transfer the ticket funds to the ticket agent within a specified timeframe. This is intended to streamline the refund process for passengers.
• Refund Timing: Once the ticket agent receives the funds from the airline, they will be required to issue a refund to the passenger within 7 days. This aims to provide passengers with quicker access to their money following any disruptions to their travel plans.
• Clarification of Refund Process: The bill will amend existing laws to replace the term "promptly" with clearer language regarding the deadlines for issuing refunds, creating a more defined process for consumers and agents alike.

Affected Parties

The bill primarily affects air carriers and ticket agents by imposing stricter rules regarding financial transactions related to canceled or delayed flights. It serves to improve the consumer experience in terms of financial reimbursements when travel disruptions occur.

Implementation and Oversight

The bill is designed to be implemented by federal transportation agencies, which will ensure compliance among air carriers and ticket agents. This may involve changes to existing systems that manage ticket sales and refunds to accommodate the new requirements.

Consumer Impact

Passengers may benefit from this legislation as it aims to shorten the waiting time for refunds in the event of flight cancellations or substantial delays. This could potentially reduce the frustration many travelers experience when dealing with refunds.

Relevant Companies

• AAL (American Airlines Group Inc.): As a major airline, it would be directly affected by the requirements placed on airlines for quicker refund processes.
• DAL (Delta Air Lines, Inc.): Delta would need to adjust its refund and fund transfer mechanisms to comply with new timelines for ticket agents.
• UAL (United Airlines Holdings, Inc.): United will be required to implement process changes to ensure timely transfers of funds to ticket agents following cancellations or delays.