The US Department of Transportation (DOT) today unveiled proposed consumer protection rules that would increase compensation for passengers who are bumped from flights, allow new flexibility in booking flights and require full disclosure of baggage fees as well as refunds for delayed or lost baggage.

"This administration believes that consumers are entitled to strong and effective protections when they fly," says DOT Secretary Ray LaHood. The proposed rule is directly tied to the most common consumer complaints about airlines, he explains. "We tried to use a measure of common sense. These are things that people get irritated about."

Under the proposed rule, compensation for bumped passengers will increase from the current $400 to $800. It would also allow passengers to make or cancel reservations within a 24-hour period without paying a penalty fee. Airlines would also be required to provide "timely notice" of changes in flight status. Carriers would have to prominently display all baggage fees as well as provide refunds and expense reimbursement if bags are not delivered on time.

Also, US and foreign carriers operating aircraft with 30 or more seats will be required to report tarmac delay data to the DOT. Currently, only the largest 18 US carriers are required to collect that information.

The DOT has also asked for comment on alternatives under consideration to accommodating special requirements of passengers with severe peanut allergies.

Following a 60 day comment period, LaHood said new rules could be in place during the second half of the year.

The proposed rule announced today follows an April rule change on tarmac delays that require airlines to adopt contingency plans to accommodate passengers.

This latest proposed rulemaking will serve to strengthen the consumer protections of last month and "raise the bar for airlines" when it comes to treating passengers fairly, says LaHood.

"Today's DOT notice of proposed rulemaking will be evaluated against that standard, with a focus on minimising potential passenger inconvenience," says James May, President of the Air Transport Association of America (ATA), which represents US carriers.

Airports Council International-North America welcomes the move by DOT, noting that it provides protection to a greater number of passengers. In March 2009, ACI-NA recommended that the final regulations provide more information for airline travellers and all passengers, not just those flying on larger aircraft or into medium- or large-hub airports.

"To the passenger, the effects of delays are the same no matter where the delay occurs or which airline actually operates the airplane" says ACI-NA President Greg Principato. "We do not believe there is any justification for only protecting a portion of the travelling public and ACI-NA is pleased that the DOT is proposing to amend the regulations."

The announcement was welcome news for an airline passenger rights group.

"Given the airlines threats to cancel flights rather than live up to new passenger protections, and their history of inaccurate reporting and data manipulation regarding delays, this proposed rule is both sensible and necessary." says FlyersRights Executive Director Kate Hanni.

Source: Air Transport Intelligence news