By Julie Johnsson |
Consumers frustrated with deteriorating airline service and rising
fees may soon have their revenge.
Airlines would have to pay up to $1,300 to passengers bumped from overbooked flights and would be required to prominently disclose fees under new passenger-centric rules proposed by the U.S. Department of Transportation.
The new consumer protections unveiled Wednesday by U.S. Transportation
Secretary Ray LaHood are designed to “strengthen” the tarmac rules that
took effect April 29 , threatening heavy fines for most flights that sit
on airport taxiways for more than three hours.
“Airline passengers have rights and should be able to expect fair and reasonable treatment when they fly,” LaHood said in a statement.
The new rules also address growing consumer confusion over fees ranging from checked-bag charges to a summer travel surcharge that make it increasingly difficult for would-be travelers to comparison shop among carriers.
Spirit Airlines, controversially, has proposed charging passengers for carry-on bags that don’t fit under its seats. And most major carriers aside from Southwest Airlines have added a surcharge ranging from $10 to $30 to many summer flights, according to FareCompare.com.
Carriers would be prohibited from advertising fares that don’t include any mandatory fees or surcharges. Airlines that charge for checked luggage also would have to reimburse those fees for bags that are lost or that aren’t delivered within two hours of the traveler’s arrival.
“[W]e no longer see a useful purpose in presenting what purportedly are ‘fares’ to consumers that do not include numerous required charges and, in our view only act to confuse or deceive consumers regarding the true full price and to make price comparisons difficult or improbable,” the proposed rule said.
The Air Transport Association, a trade group representing the nation’s largest airlines, said it would closely examine the proposed rule and whether it would minimize potential passenger inconvenience.
The April 29 passenger protections face their first real test as carriers cope with higher volumes of summer travel and the threat thunderstorms will wreak havoc with flight schedules.
Airlines had warned that they will be forced to cancel more flights rather than risk fines that could reach into the millions of dollars per stranded aircraft. Some travel industry experts are predicting the new rules could backfire this summer. With many flights already sold-out, carriers potentially could take days to find seats on alternate flights for travelers whose flights are canceled.
“There will be more cancellations,” said Michael Boyd, president of Boyd Group International, an aviation consulting firm based in Evergreen, Colo. “Airlines will get smart and tell you ‘We’re doing this because Secretary LaHood tells us to.’ “
But some observers say that while airlines may belly-ache, they will find a way to work within the new rules. “Weather, we can’t control,” said travel writer Joe Brancatelli, publisher of JoeSentMe.com. “But I would make the case the three-hour rule protects us somewhat. I’d rather have a canceled flight than sit on the tarmac five hours.”
The Obama Administration would raise compensation to passengers who are “bumped” from oversold flights. The proposed rule would increase limits to $650 for passengers shifted to another flight scheduled to arrive within two hours of the passenger’s original scheduled arrival for domestic flights and four hours later for overseas travel. Passengers would be due $1,300 if they were placed on flights arriving after those limits. That’s up from the current $400 and $800 compensation standards.
The proposed rules would broaden the number of flights subject to the tarmac rules and International carriers would also be subject to the new tarmac rules. Overseas flights would face fines for tarmac delays that exceed four hours. Carriers would also be responsible for drawing up contingency plans for passengers stranded at smaller airports.
Other proposed rules:
– Allow passengers to make and cancel reservations within 24 hours without penalty
– Prohibit price increases after a ticket is purchased
– Require airlines to provide timely notice of delayed or canceled flights
You know, all of these rules sound promising, don’t they? And before any of you answer, tell me this: are you an employee familiar with how airlines and air traffic control operate?
Well, I’m an ex-airline employee, and this I can promise: There will be more flight cancellations, leading to a less competitive environment, which means airline fares will adjust accordingly. And by “accordingly”, I mean “up.”
Don’t get me wrong. I would have LOVED for these rules to have been around several years ago when I was flying. Just as any passenger, I hated being stuck on the tarmac for hours, waiting for the air traffic control folks to either allow us to take off OR return to the gate (that’s right folks, ATC, not the airlines, make that critical decision). But you know what that would have meant? Since I was paid by the flight hour, I would have lost money.
Now, who on this board likes to lose money? Not you, and not me, and certainly not a business. Therefore, I agree 100% with Michael Boyd; the consumer will pay for this dearly.
Why didn’t the government use their time wisely and implement upgrades to our air traffic control system? A huge part of the problem is our out dated, crappy system. I’ll tell you why. That’s because the government would have to pay money to update that system. Why do that when they can hamstring the airlines, who will in turn, reduce flight capacity, which will eliminate the congestions and chaos? But in that process, my dear consumer, the old law of supply and demand will cause airfares to increase.
Don’t believe me? Sit back and watch. It may not happen this summer, but I guarantee you, it will happen over the course of the next two years.
Oh, and let’s not even talk about the layoffs (more unemployment, anyone?). We consumers are our own worst enemy! Here’s an idea; let’s all start taking road trips as families like we used to do. Those were the best trips ever! Oh, but wait. People don’t actually like spending time with their families anymore, do they?
Again, the Obama administration putting more rules and regulations on the private industry without doing the research. Socialism is well within reach now…
The government has enforced regulations on private businesses before OBAMA, please explain to me why is this standard practice since the New Deal is now called “Socialism” Please help me understand that it is not just because he is black.
“TripBase”, you are full of BS. The tarmac time limits will force the airlines to do something they have previously shown little interest in: contingency planning.
Sounds like we have differing opinions on the new rule. It is still under discussion, for roughly the next two months. Let the Department of Transportation hear your voice at regulationroom.org!