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.

FMI: www.dot.gov, www.regulationroom.org, www.flyersrights.org