US mulls $200 minimum cash compensation for stranded flyers

The US Transportation Department is considering a new proposal that would mandate airlines to compensate passengers with at least $200 in cash if they are stranded due to issues within the airline's control.

The compensation could go up to $775 depending on the situation. This proposal is part of a broader initiative aimed at enhancing consumer protection for travelers facing flight cancellations or significant delays.

As part of the proposal, which is currently open for public comment, airlines might also be required to cover the cost of meals and hotel accommodations for affected passengers.

This move comes amid a series of consumer-protection efforts championed by US Transportation Secretary Pete Buttigieg, who has been active in implementing new rules for airline refunds and increasing enforcement measures.

Secretary Buttigieg's initiatives have included a closer examination of airline loyalty programs and their impact on consumers. With the upcoming change in administration, it remains to be seen whether these efforts will be sustained.

President-elect Donald Trump has expressed intentions to cut down on regulations that are seen as burdensome to businesses.

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Source: Investing.com