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Purdue prof: Airline compensation rule to minimally raise fares, help passengers

By Liz DeSantis

Posted May 10, 2023

Planes sit on the tarmac outside the Indianapolis International Airport

Planes sit on the tarmac outside the Indianapolis International Airport. (WFIU/WTIU News)

A Purdue University professor is talking out about proposed compensation for passengers experiencing canceled or delayed flights. 

Associate Professor of Aviation Management Volodymyr Bilotkatch said that Department of Transportation Secretary Pete Buttigieg’s proposal would more closely align U.S. regulations with those of European Union countries; there, airlines must provide compensation above reimbursement to passengers for cancellations and some delays. 

Bilotkatch said that passengers could be compensated if their flights are interrupted by controllable factors, such as maintenance issues or crew scheduling, but passengers on flights interrupted by weather and other uncontrollable factors will likely not be eligible. 

Bilotkatch said he expects any increases to passenger costs to be modest. “I don't think that any airfare increases will be sort of significant – maybe not more than, let's say, $10 per round trip,” he said. 

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Bilotkatch also predicts only a marginal change in cancellation rates. He said that the allowance for weather and other circumstances could provide a gray area for airlines. “I can foresee the airlines kind of trying to sort of blame as much of a delay on external factors as possible.” he said. 

What Bilotkatch says will change is peace of mind for passengers. He said that the compensation could help defray costs of missing work or booking hotels for passengers with canceled or delayed flights. 

“The passengers will be better off,” Bilotkatch said. “Even though at the cost of a very modest price increase.” 

Further, he said that he expects to see airlines hold flights for delayed connecting passengers more frequently to avoid paying the compensation to passengers who could not get a replacement flight for several hours. 

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However, many of the details of the proposals are not entirely clear yet, according to Bilotkatch, such as the amount of compensation or what would constitute a delay.  

Details will be debated in a series of public hearings in the coming months as airlines submit rebuttals. Bilotkatch says he expects the DOT to put a policy in place ahead of the busy holiday travel rush in the winter months.

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