Amid Chaos, Government Revisits Air Passengers' Rights

"The deck is heavily stacked against consumers right now," says Kate Hanni, founder of Coalition for an Airline Passengers' Bill of Rights. Last year, complaints about everything from mishandled baggage to severely delayed flights hit an all-time high, according to the 18th annual Airline Quality Rating study conducted by the University of Nebraska at Omaha and Wichita State University. Rapidly rising fuel prices and the Federal Aviation Administration's maintenance crackdown has only exacerbated the situation, prompting several low-cost carriers to shutter their operations while the rest scramble to make repairs amid widespread cancellations.

It doesn't help that travelers' rights have been eroding at the same time the airlines' problems are escalating. Congress let a post-September 11 regulation requiring airlines to take on passengers of a failed airline (for the replacement ticket price of $50) lapse two years ago. Then last month, a federal appellate court struck down a New York state law that required airlines to provide food, water and bathroom access to passengers grounded for more than three hours. According to the ruling, only the federal government can pass laws regarding passenger rights.

For its part, the federal government has been slow to move, but it's starting to pick up momentum. The Department of Transportation recently announced a new set of rules that includes doubling the maximum amount of compensation that passengers who are bumped from flights or rerouted should receive to $800. The rules also extend compensation to those on flights of 30 or more passengers. "That brings in most of the commuter planes that account for a disproportionately high percentage of bumpings," says Ed Perkins, contributing editor for travel advice site SmarterTravel.com. The higher limits may result in more money for passengers who voluntarily give up their seat. "They've commonly been offered chump change — $100; a $200 voucher on a full-fare flight," says Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group.

However, consumer advocates argue that the new compensation levels aren't enough. The $400 cap the DOT set in 1978 amounts to more than $1,300 in today's dollars. "They should have at least tripled it, not doubled it," says Mierzwinski. Some say the sums aren't enough to curb airline overbooking. "It's not enough to be prohibitive," says Hanni.

There might be more changes in the future, however. This week, the Senate is set to debate a passenger "bill of rights" as part of a broader Federal Aviation Administration bill. Among other things, the proposed legislation would require airlines to set a strategy for deplaning passengers during severe delays, as well as providing basic needs like food and water.

If you're planning to fly the unfriendly skies anytime soon, here's what you need to know about your rights.

The terms of a contract of carriage vary from airline to airline, and depend largely on the cause of the delay. (Anything deemed outside the airline's control, from weather to fuel shortages, garners few, if any, concessions.) Most will cover a hotel and meals if you're stranded overnight. Airlines will also try to put you on another flight — and some will even look beyond their own fleet to competitors'. Delta, for example, says it will consider booking you on another carrier, upgrading your fare or arrange ground transportation. Low-cost carriers tend to offer the least, simply because they don't have many agreements with other carriers to offer cross-ticketing, says Perkins.