View Rule

Statement of Need: This rule is needed to provide consumers with more information and protections to minimize the adverse consequences of air travel delays and cancellations. The Department's Office of the Inspector General has recommended that the Department take specific action to improve the air travel environment for passengers and Congress has proposed legislation to improve airline passenger protections.

Summary of the Legal Basis: The Department has authority and responsibility under 49 USC 41712, in concert with 49 USC 40101(a)(4) and 40101(a)(9) and 49 USC 41702, to protect consumer from unfair and deceptive practices and to ensure safe and adequate service in air transportation.

Alternatives: The main alternative would be to take no regulatory action to address the increasing number of passengers who are dissatisfied with airline service as a result of recent marathon tarmac waits and the epidemic of flight delays, and to rely on the airlines to regulate themselves.

Anticipated Costs and Benefits: The rule is estimated to cost $5.6 million and result in benefits of $14.1 million per year (at a 7 percent discount rate).

Risks: The risk of not taking regulatory action would be a continuation of the dissatisfaction and frustration passengers have with the air travel environment.