On Friday morning, a global IT outage caused major airlines, including United, Delta, and American Airlines, to ground flights, resulting in widespread delays for travelers.
Eric Napoli, Chief Legal Officer at AirHelp, noted, “You can imagine the mass chaos unfolding everywhere.” He added, “Any kind of shutdown, the bottleneck [it has] on so many flights is incredible.”
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Passengers affected by the disruptions may be eligible for a refund, hotel or meal vouchers, or other forms of compensation, though this largely depends on the airline’s policies.
Financial Obligations of Airlines
According to the U.S. Department of Transportation (DOT), passengers are guaranteed a refund of the ticket price (including fees) if their flight is canceled by the airline and they choose not to travel on an alternate flight. This applies even to non-refundable tickets.
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Customers are also entitled to refunds for “significant” schedule changes or delays if they opt not to fly, though the DOT does not provide a precise definition of “significant.” This is assessed based on factors such as the length of the delay and specific circumstances.
Starting October 28, airlines will be required to automatically and promptly issue refunds for significant itinerary changes, including delays of three hours for domestic flights and six hours for international flights, as per a new Biden administration rule. However, this rule will not cover customers affected by Friday’s outage, who may need to navigate airline policies to secure a refund.
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Challenges with Third-Party Bookings
Travelers who booked through third-party sites may face additional hurdles when seeking compensation. According to Napoli, these customers will likely need to deal with the intermediary for any financial claims.
Expedia acknowledged high call volumes and long wait times on social media, advising customers to delay non-urgent inquiries to avoid extended hold times.
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Airline Policies on Meals and Hotels
For those still needing to reach their destinations, airline compensation policies vary. Generally, airlines are required to rebook passengers on the next available flight and may offer a meal or hotel stay for long delays or cancellations.
Sara Rathner, a travel expert at NerdWallet, explained, “What might differ [between airlines] is how much compensation you might get after the fact, not just for the delays but any other costs you might incur.”
The Transportation Department’s website details each airline’s customer service commitments for cancellations or delays exceeding three hours.
Control and Compensation for Disruptions
The DOT considers delays and cancellations resulting from the IT outage a “controllable” event attributable to the airline. In contrast, events such as weather disruptions are generally considered uncontrollable, making it harder for consumers to receive compensation.
CrowdStrike, a cybersecurity firm, reported a major disruption on Friday linked to a tech update, affecting numerous organizations, including airlines. Breyault noted that airlines choose their vendors, and a vendor failure could be deemed controllable.
The DOT advises passengers to review their airline’s customer service plan on the airline’s website to understand what compensation is available. Receipts for unexpected costs, such as lodging and meals, should be kept for potential reimbursement when filing claims with airlines or travel insurers.
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