S. 3347: Flight Delay and Cancellation Compensation Act

This bill, known as the Flight Delay and Cancellation Compensation Act, aims to enhance consumer protections for airline passengers in the event of significant flight disruptions or cancellations. The key components of the bill are as follows:

Establishment of an Aviation Rulemaking Committee

The bill mandates the creation of an Aviation Rulemaking Committee within 90 days after its enactment. This committee will review and provide recommendations on:

• Implementation of requirements for cash compensation and support to passengers affected by cancellations or significant delays.
• Ensuring air carriers (domestic airlines) and foreign air carriers provide cash compensation directly to passengers when a flight is significantly delayed or canceled due to the airline’s fault.

Compensation Requirements

The Committee is tasked with developing rules that outline compensation for passengers:

• Passengers would receive at least $300 for a delay of over 3 hours but less than 6 hours.
• Passengers would receive at least $600 for delays of 6 hours or more.
• Airlines must provide free rebooking options for passengers affected by these delays.

Report Submission

Within 12 months of the bill's enactment, the Committee must submit a report to the Administrator of the Federal Aviation Administration (FAA) and the Secretary of Transportation, including consensus recommendations based on the following:

• Cash compensation comparable to existing regulations in Canada and the European Union.
• Coverage of costs for amenities such as meals and lodging for overnight delays.
• An educational process to inform passengers about their rights regarding compensation and reimbursement.

Rulemaking Process

Following the Committee's report, the Secretary of Transportation is required to issue a notice of proposed rulemaking based on the recommendations, typically within 90 days. This includes:

• Issuing interim rules within 18 months that enforce compensation and accommodations as specified.
• Providing regular updates to Congress regarding the status of these regulations.

Interim Measures and Requirements

The interim regulations will ensure that, during the transition to a final rule, passengers affected by cancellations or delays will receive:

• $750 in cash compensation if the flight disruption is attributable to the airline.
• Rebooking on the next available flight or alternative transportation without additional costs.
• Meals, lodging for overnight disruptions, and transportation to and from the lodging.

Definitions and Scope

The bill clarifies key terms such as "air carrier," "foreign air carrier," and "significantly delayed," to ensure a clear application of the rules. Notably, it includes airlines from foreign countries under the same compensation requirements applicable to domestic airlines.

Conforming Amendments

To align with the provisions of this bill, the existing Section 512 of the FAA Reauthorization Act of 2024 will be amended to remove certain clauses that may conflict with new regulations set forth by this legislation.

Relevant Companies

• UAL (United Airlines Holdings, Inc.): As a major airline, United Airlines would be directly affected by increased compensation requirements and the need to streamline passenger support during disruptions.
• DAL (Delta Air Lines, Inc.): Delta may face additional financial burdens due to the mandated compensation for delayed or canceled flights, necessitating adjustments in their operational management.
• AAL (American Airlines Group Inc.): Similar to its peers, American Airlines would also need to implement new procedures and compensation structures in line with the bill.
• SWA (Southwest Airlines Company): Southwest would be required to process and meet the newly established compensation guidelines, requiring potential adjustments to their customer service operations.