Will new DOT rule impact UA's two hour schedule change rule?
 

Presently UA will refund or allow a generous reschedule if there is a two or more hour change in schedule. This applied to both advance schedule changes and day of travel issues.
Many have used this schedule change policy to get better, perhaps, more direct routing or better time of day. Some have called this a "golden ticket."

The US DOT has released new rules Airlines will now be required to give automatic cash refunds for canceled and delayed flights that seems to more aimed at day of travel changes
also Airlines Must Provide Automatic Cash Refunds, More Transparency
DOT Press Releases
Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees
Biden-Harris Administration Announces Final Rule to Protect Consumers from Surprise Airline Junk Fees
FACT SHEET: Biden-Harris Administration Announces Rules to Deliver Automatic Refunds and Protect Consumers from Surprise Junk Fees in Air Travel

Additionally the DOT included
There are other changes -- disclosure of fees which may make for a more cluttered display.

However, hopeful the refund requirement does not impact UA's advance schedule change policy

Reminder -- let's stay focus on the impact on UA policies (therefore the impact on us) and not wander into OMNI/PR land

I think we all know that it will.

It's hard to avoid going OMNI on this -- but this is what happens when you overregulate.

Not if we focus on how UA may change their policies.

Two things stand out to me so far in the new ruling:

"Canceled or significantly changed flights: Passengers will be entitled to a refund if their flight is canceled or significantly changed, and they do not accept alternative transportation or travel credits offered. For the first time, the rule defines “significant change.” Significant changes to a flight include departure or arrival times that are more than 3 hours domestically and 6 hours internationally; departures or arrivals from a different airport; increases in the number of connections; instances where passengers are downgraded to a lower class of service; or connections at different airports or flights on different planes that are less accessible or accommodating to a person with a disability."

This refers to *changes* to flights/itineraries (e.g. an EU261-like rule). Does a delay constitute a "significant change"? I don't think so based on this wording. I think it's directed towards a schedule change that's made in advance and not day-of. Of course this rule can also apply to itineraries changed at the airport due to IROPS. But, a rolling delay (mechanical, weather, etc.) doesn't IMO. I'm sure the intent of this rule will be misconstrued. So, IMO, United should not be changing its 2 hour policy.

"Full amount: Airlines and ticket agents must provide full refunds of the ticket purchase price, minus the value of any portion of transportation already used. The refunds must include all government-imposed taxes and fees and airline-imposed fees, regardless of whether the taxes or fees are refundable to airlines."

This remains ambiguous and allows airlines like United to reprice your ticket as if you flew a one-way and offer a significantly reduced, or some cases zero, refund for the return portion (except for taxes). The DOT could have done work here to clarify this because I expect zero change on United's part in screwing over customers.

-RM

I see a potential overlooked consequence of policies becoming worse in some cases like this.

If I'm understanding correctly, UA's policy is already more generous than this? If so, it's not at all clear to me why UA would change its policy, and rather it seems most likely that UA will trumpet that it is already more flexible/generous than required?

I read it differently - any delay, for whatever reason (incl. one caused by rolling delay), becomes refundable. That being said, I think most people traveling need to get somewhere, so they'll eat a delay/re-accomodation to get where they need to go. Getting a refund (usually) doesn't help in that endeavor at the last moment.

As United currently offers refunds on non refundable flights when there is a schedule change I do not see an issue with this directive.

The refund of the luggage fees is a good move for UA pax without status.

DOT has never specifically ruled that advance schedule changes (such as a flight number change) constitutes a "cancellation" and the airlines generally do not consider them such. Both DL and UA currently offer refunds on advance schedule changes over 2 hours in their CoC. Adding a connection or change of carrier is also grounds for a refund.

Why be more generous than the new industry / DOT standard?
I hope so but wonder if UA might change.

Remember during COVID UA tried to go to 12 or more hours until DOT forced them back to their prior policy.

Note for the 24 hour free cancellation of non-refundable, UA 's practice is more generous than DOT rule in respect of still allow refund for last minutes ( with 7 days) booking. But UA's written policy includes the 7-day cutoff.

I fully expect them to change to match the DOT rule, and anything less than the rule will be a "one time exception" that some agents may give to some Premier members.

Competitive advantage?

Possibly or to match others. But to be an advantage, it needs to be widely known like the no change fee (which domestically has been neutralized).

Is there "travel credits" for delays though? Is it really like EU261 or not really

Most people would rather take the re-accommodation except when the "next available flight" is 4 days in the future - which happened to me not that long ago. I had no choice but to cancel and rebook on another airline, last minute.