Thu, Mar 11, 2010
Analysts Say Three-Hour Delay Rule Could Cost Airlines Millions
Per Plane
Airlines are saying they will cancel flights rather than face
potentially millions of dollars in fines once a rule goes into
effect that could make ground delays longer than three hours very
costly. Both American Airlines and Continental Airlines are on
record as saying they would definitely cancel flights rather than
face the penalties.
Television station KXAS in Dallas reports that Continental CEO
Jeff Smisek said as much to investors Tuesday, and aviation
consultant Denny Kelly says there is no reason for other airlines
not to follow suit. “They'll do it partially because they
think they are going to punish passengers," he said, "and if they
punish them, someone will get this legislation removed.”
Under new DOT rules set to go into effect April 29th, airlines
can be fined up to $27,500 per passenger if a plane is delayed on
the ground for more than three hours. Airlines would either have to
return to the gate and allow passengers to deplane, or face the
fines. A fully-loaded MD-80 could cost an airline nearly $4
million, while a packed 757 would be more than $5 million.
American Airlines spokesman Steve Schlacter said cancellations are
unavoidable. “It's one of the unintended consequences of a
bill that has no flexibility.”
DOT spokesman Bill Mosley said that airlines should be able to
schedule flights in such a way that they can avoid delays,
cancellations, and fines. "Carriers have it within their power to
schedule their flights more realistically, to have spare aircraft
and crews available to avoid cancellations," he said. He added they
should also be able to rebook passengers when cancellations do
happen.
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