Increased Compensation For Bumped Passengers, Fair Price
Advertising, And Other Measures Included
U.S. Transportation Secretary Ray
LaHood (pictured, right) proposed new consumer protections for
air travelers Wednesday, building on the Department's recent rule
banning carriers from subjecting passengers to long tarmac delays
and other deceptive practices.
Specifically, the new proposed rule would:
- Increase compensation for passengers involuntarily bumped from
flights.
- Allow passengers to make and cancel reservations within 24
hours without penalty.
- Require full and prominently displayed disclosure of baggage
fees as well as refunds and expense reimbursement when bags are not
delivered on time
- Require fair price advertising.
- Prohibit price increases after a ticket is purchased.
- Mandate timely notice of flight status changes.
"Airline passengers have rights and should be able to expect
fair and reasonable treatment when they fly," U.S. Transportation
Secretary Ray LaHood said. "With this rulemaking, we're
proposing to strengthen the consumer protections enacted last month
and raise the bar for airlines when it comes to treating passengers
fairly."
The rule published last December, which adopted a three-hour
limit for airline tarmac delays for domestic flights, also required
U.S. carriers to adopt contingency plans for lengthy tarmac delays
at large-hub and medium-hub airports and to publish those plans on
their websites. Wednesday's proposed rule would expand the
requirement for having contingency plans to include foreign
airlines' operations at U.S. airports and would require carriers to
adopt contingency plans for small- and non-hub airports.
The rule also would require the reporting of additional tarmac
delay data to DOT. The Department would collect this data from all
U.S. and foreign airlines operating aircraft of 30 or more seats on
flights to and from the United States and charter flights.
Currently, the Department collects this data only for the domestic
scheduled flights of the 18 largest U.S. airlines.
The proposed rule also would increase the potential compensation
for being involuntarily bumped from oversold flights.
Currently, airlines may limit compensation for involuntary bumping
on flights to $400 if the carrier arranges substitute
transportation scheduled to arrive at the passenger's destination
one to two hours after the passenger's original scheduled arrival
for domestic flights, or one to four hours for international
flights, and to $800 if the substitute transportation is scheduled
to arrive more than two hours later for domestic flights, or more
than four hours later for international flights. The proposed
rule would quickly increase these limits to $650 and $1,300,
respectively, and thereafter adjust the amounts for inflation every
two years.
The Department also proposed a number of measures to make it
easier for consumers to know how much they will have to pay for air
transportation. Carriers would be required to provide special
notice any time baggage fees are increased, and to notify
passengers buying tickets whether they must pay to check up to two
bags. It also asked for comment on several alternatives under
consideration to provide greater access to air transportation to
persons with severe peanut allergies.
The proposal drew a quick reaction
from FlyersRights.org, a watchdog group that has long championed a
Flyer's Bill of Rights. "We applaud Sec. LaHood for moving to
strengthen consumer protections and to ensure that the newly
promulgated passenger rights are enforced as intended," said
FlyersRights.org Executive Director, Kate Hanni. "Given the
airlines threats to cancel flights rather than live up to new
passenger protections, and their history of inaccurate reporting
and data manipulation regarding delays, this proposed rule is both
sensible and necessary."
"Passengers from across the nation have spoken, and the DOT has
heard us loud and clear," she continued. "The airlines must live up
to the new rights afforded consumers or face significant
consequences," added Hanni. "We look forward to continuing our work
with DOT to help make these new common sense protections a
reality."
To support President Obama's open government initiative, the
Department has partnered with the Cornell eRulemaking Initiative in
a pilot project, Regulation Room, designed to improve the public's
ability to understand and participate in this rulemaking through a
web-based discussion format.