More Passenger-Friendly Airline Rules Introduced by DOT

(Dive Travel Business News - June 9, 2010) -- Just months after the US Department of Transportation  (DOT) dealt with lengthy on-ground flight delays with new tarmac rules,  DOT Secretary Ray LaHood has released a new round of consumer-friendly airline rules. If adopted, this newest set of airline regulations would:

• Force smaller airports and international air carriers to adopt contingency plans for lengthy tarmac delays;
• Make airlines give passenger more information on delays;
• Foreign airlines would become subject to the same ground delay data reporting and disclosure rules as U.S. carriers;
• Establish of minimum standards for carriers’ customer service plans and extend the customer service plan requirements to cover foreign carriers;
• Change airline policies on denied boarding compensation, also known as involuntary bumping, to increase minimum compensation, add inflation adjustment, and offer more information to passengers about the policies
• Require that carriers advertise only the full price of the fare, including all known fees and taxes in advertising and prohibit use of sales provisions that require purchasers to opt out of add-ons such as trip insurance;
• Require airlines to reveal extra fees like baggage and seat reservation fees at the same time that they publish their airfares;
• Allow passengers a 24-hour grace period during which they can change their mind about an airline ticket purchase;
• Ban the practice of post-purchase price increases;
• Require prompt passenger notification of flight status changes, such as cancellations and delays at the boarding gate area, on website and on telephone reservation systems;
• Permit consumers to file a lawsuit wherever a carrier does business. Currently, air travelers are limited by so-called “choice of forum” rules that have effectively immunized the airline industry from lawsuits.

The new Tarmac Delay Rule has caused concern about  a potential increase in involuntary bumping of passengers, making the proposed increase in compensation limits for bumped passengers a welcome benefit. If enacted, the new rules, passengers kicked off oversold flights would get up to $650 in cash compensation for short delays and up to $1,300 for longer ones - an increase from the current $400 and $800 limits on compensation for involuntarily bumped fliers. The higher limits mean those who volunteer to be bumped could be paid more.

Additionally, bumped travelers flying on frequent-flier award tickets would be eligible for compensation equal to the lowest price of a paid ticket in the same booking class on the same flight.The limits could be adjusted every two years.

DOT also is seeking public comment on whether airlines should be allowed to serve peanuts and peanut products onboard, or whether the practice should be banned to protect travelers with serious peanut allergies.

This latest DOT consumer protection proposal is a dramatic departure from only a few years ago, the DOT was known for being more friendly to the airlines and certainly more foregiving of airline violations.

Additional Resources: 
New Tarmac Delay Rule 101
DOT New Passenger Protection Rules
 

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