Last year, the Department of Transportation (DOT) issued a final rule that would require certain compensations for flight attendees. This compensation would cover matters such as flight delays, cancellations or delayed baggage claim, and would be an automatic process. These refunds would be required within seven days in the same payment method provided by the consumer. The DOT also confirmed other benefits for passengers.

Under the instruction of the DOT, airlines would have been required to dissolve family seating junctures that make it difficult for families to sit together, getting rid of those extra charges. They were also seeking to expand rights for wheelchair passengers, dissolving barriers and ensuring a safer environment for them. These plans fell through last month when the new DOT administration abolished the plan.

Towards the end of Biden’s presidency, he established certain rules across different government departments, his passenger compensation plan being one of them. This new rule was met with pushback from multiple airlines, such as Spirit Airlines, who wouldn’t be able to meet the necessary costs it would take to compensate all passengers. Earlier this year, Spirit Airlines filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy codes.

According to Spirit Airlines, they are still allowed to continue operations despite the drawbacks with debt and low revenue. “With these approvals in place and access to the many new tools now available to us, we can continue to implement our transformation,” stated the CEO of Spirit Airlines, Dave Davis.

The implementation of the new rule could potentially raise costs for airlines and consumers, if airlines were required to compensate them, airlines would be forced to pay passengers a minimum of $200 and an upwards of $775 and for airlines in a similar situation as Spirit Airlines, which would put many of them in debt or force costs to exceed revenue. These added pressures to airlines could potentially raise ticket prices to cover the expense of compensation.

Biden’s plan has its pros and cons, but ultimately failed to hold water with airlines and the new Department of Transportation. Compensations for flight delays and cancellations are still offered at most airlines but are not guaranteed, unless asked for by the passenger.