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Wed, Oct 24, 2007

Airlines Say Delayed-Flight Fines Could Mean Higher Ticket Prices

Passing The Costs Onto The Customer?

As the Department of Transportation wraps up a six-month investigation into chronically late airline flights, carriers are going on the offensive... saying so-called "congestion pricing" would lead to higher airfares for passengers.

As ANN reported, the DOT launched its investigation into suspect airline scheduling practices in April. The DOT alleged in some cases, airlines published flight schedules the carriers knew to be, at best, dazzlingly optimistic... and at worst, horribly inaccurate. At that time, the New York Times reported as many as eight airlines could face potential fines for failing to tell the truth in their flight schedules.

The Associated Press reports DOT has since found at least 26 flights more than 15 minutes late, more than 70 percent of the time. Agency spokesman Brian Turmail said if any of those 26 flights were delayed in the most recent quarter reviewed by DOT, those airlines would face "significant financial penalties."

Results of the survey are expected to be made available in a few weeks... but the Air Traffic Association, lobbying group for the nation's largest airlines, is beginning the PR battle now.

"We're disappointed that they're taking this course of action given the effort by industry to significantly reduce delays," said ATA spokesman David Castelveter "No one has greater incentive to move its flights on-time than the airlines."

Castelveter notes airlines have a strong incentive to improve their schedules, saying delays cost the industry $6 billion per year. ATA maintains the answer lies not in eliminating flights from the delayed list, however... as those flights are scheduled based on customer demand.

DOT Secretary Mary Peters suggested this week airlines operating chronically-late flights be forced to pay higher landing fees during peak periods, in order to prompt airlines to voluntarily restrict flights causing the congestion.

The airlines respond, however, such practices wouldn't curb flights. What it would lead to, the carriers say, are higher airfares.

Carriers likely to face fines include Atlantic Southeast Airlines, ExpressJet, SkyWest, AirTran, Delta, and Comair. Those airlines -- most of them regional carriers -- operated flights that were late at least 90 percent of the time in August. Nearly half of ASA's flights were late; two arrived late every time they took off, according to DOT.

ASA spokeswoman Kristen Loughman said the SkyWest-subsidiary was not aware of any looming fines from DOT.

FMI: www.dot.gov, www.airlines.org

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