US transportation chief to meet with airline CEOs on air traffic reform, sources say

By David Shepardson

WASHINGTON, Sept 9 (Reuters) - Transportation Secretary Sean Duffy plans to meet with the CEOs of major airlines on Wednesday on the government's $12.5 billion plan to overhaul the nation's aging air traffic control system, sources told Reuters.

Duffy will attend a meeting of Airlines for America, the trade group representing United Airlines UAL.O, Delta Air Lines DAL.N, American Airlines AAL.O, Southwest Airlines LUV.N and others.

The trade group and USDOT declined to comment. Duffy is pushing Congress to add another $19 billion for air traffic control after a rush of high-profile mishaps, near-misses and a catastrophic crash in January between a U.S. Army helicopter and a regional American Airlines jet that killed 67.

Airlines have been pushing USDOT under President Donald Trump to take steps to roll back airline passenger consumer protections advanced during the administration of Democratic President Joe Biden.

On Thursday, USDOT it would drop a plan to require airlines to pay passengers cash compensation when U.S. flight disruptions are caused by carriers, in a setback for aviation consumer advocates and drawing outrage from Democratic lawmakers.

Airlines in the U.S. must refund passengers for canceled flights, but are not required to compensate customers for delays. The European Union, Canada, Brazil and Britain all have airline delay compensation rules.

In May, Airlines for America asked USDOT to adopt a broad swath of deregulatory actions, including to terminate a partnership with state attorneys general to fast-track investigations into complaints against airlines and to terminate "baseless and unfair investigations and enforcement practices against airlines."

USDOT also said last week it is considering rescinding regulations issued under Biden in April 2024 that required airlines and ticket agents to disclose service fees alongside airfares to help consumers avoid unnecessary or unexpected fees. The requirement was put on hold by the court pending an industry legal challenge.