Regulations finalized last week by the Transportation Department would require airlines to issue refunds by default in cases of cancellations or lengthy flight delays, unless the flyer chooses to accept a rescheduled itinerary or a voucher.
But language in the FAA reauthorization bill that is expected to receive floor votes in the House and Senate this week could throw that provision into legal disarray.
The cause of the potential muddle is a clause in the 1,069-page bill which states that an air carrier shall "upon written or electronic request of the passenger, provide a full refund" for any canceled or significantly delayed flight.
By placing the onus on the passenger to request a refund, the FAA reauthorization bill could significantly weaken the DOT’s new regulations before they even take effect in late October.
In an email, Travel Weekly columnist and travel industry attorney Mark Pestronk said that if the FAA bill as currently written becomes law, it would supersede the DOT rule.
DOT secretary Pete Buttigieg, however, isn't sure about that.
Speaking with reporters Tuesday, Buttigieg expressed confidence that the rule would survive legal challenges, even if it differs from a final FAA bill.
"We think our regulation is very strongly rooted in our legal authorities," Buttigieg said, according to a Bloomberg Government report.
Some consumer advocates, including Sen. Elizabeth Warren (D-Mass.), are more circumspect.
"This would be a gift to the airlines, who know many travelers won’t have the time or resources to navigate the bureaucratic process they designed," Warren tweeted on Tuesday.
Airlines oppose the new DOT refund rule. Last week, trade group Airlines for America (A4A) said the regulation, combined with new DOT regulations on ancillary fee transparency, would make air travel more expensive.
"Unnecessary regulatory rules issued without collaboration will lead to three things: confusion for consumers, reduction in choice and a decline in competition, which historically drives up prices," A4A said.
Congress must pass the FAA
reauthorization bill by May 10 or pass a short-term funding extension.