FITA Travel News
Volume 2 Issue 11
May 1999
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Legislation: Much of the current zeal and heightened legislative activity has been fueled by two recent industry incidents: the New Year’s weekend travel mishandling in Detroit during a severe blizzard and the recent pilot "sick-out." Industry response calls the legislation unfair, saying that it will result in "unintended consequences." One issue of particular concern to the industry is that the proposal would back up methods some travelers use to save on fares such as "hidden city tickets" and "back-to-back" ticketing.
Elliot Seiden, a Northwest vice president, calls Shuster’s proposal to provide penalties that multiply each hour for stranded passengers "ridiculous." He said, "These delays aren’t the airlines’ fault...they are the fault of the creaking air traffic control system and the weather." He said the airlines prefer the Clinton-Gore proposal.
Although the number of complaints has risen, it’s important to know about an area of service that is improving. The rate of involuntary bumpings dropped to 0.87 per 10,000 passengers, an 18 percent decrease from 1997. That is the biggest decrease in five years. Airlines are trying to improve this situation further by putting in place software that can better predict passenger demand.
While the bills proposed make many passenger-friendly provisions such as provisions for waylaid passengers and more ticketing flexibility, passengers need to be aware that if the bills are passed, the changes may come at a significant price. Airlines will need to raise airfares to compensate for the lack of control these ticketing provisions will place on their current inventory and pricing systems. One airline official has predicted that if the legislation is passed it will mean as much as a $19 increase on one-way tickets. Many predict that these bills will not be passed.
Consumers should know rights and airline responsibilities. For the business traveler, company policy usually dictates specific airlines and booking classes, which takes the fare-finding obligation off them. However, this still leaves the traveler with the duty to know what procedures to follow to ensure the fullest compensation is received in the event that an airline does not fulfill certain promises inherent in the purchase of a ticket. A booklet detailing airline consumers’ rights, Fly-rights: A Consumer Guide to Air Travel, has been created by the Department of Transportation. For $1.75, which includes postage, the 58-page pocket-size booklet can be ordered from the Consumer Information Center, Pueblo, Co 81009. The document is also available from the DOT website: http://www.dot.gov/airconsumer/ flyrights.htm
Overbooking: Most airlines make it standard practice to overbook flights to compensate for "no-shows." In the situation of an overbooked flight, the DOT and most European governments have mandated that an airline must first ask for volunteers before involuntarily bumping passengers. Compensation differs between those passengers voluntarily bumped and those who are involuntarily bumped. For those who are voluntarily bumped, no DOT mandated compensation exists, so airlines will often negotiate with travelers and bump those with the lowest demands. If an airline ticket is offered in compensation, the traveler should be sure to check for restrictions and length of validity. For those who are involuntarily bumped, there are DOT mandates. All passengers who are involuntarily bumped must be provided with a written statement describing their rights and explaining how the carrier determines the order in which passengers will be bumped.
If the airline arranges substitute transportation scheduled to get to the final destination, including later connections, within one hour of the original scheduled time of arrival, there is no compensation due. If the substitute transportation is scheduled to arrive between one and two hours after the original arrival time (between one and four hours on international flights) the airline must pay an amount equal to the one-way fare to the final destination, with a maximum of $200. If it is more than two hours (four internationally), or if the airline does not make any substitute travel arrangements the compensations double (200 percent of the fare with a $400 maximum.) The traveler is always entitled to keep the original ticket and use it on another flight. The denied boarding compensation is essentially a payment for the inconvenience experienced. These regulations do not apply to charter flights or to scheduled flights operated with planes that hold 60 or fewer passengers. International flights inbound to the United States are also now mandated to follow these guidelines.