New passenger protection rules in full swing

September 2011

The U.S. Department of Transportation (DOT) is has begun to implement new passenger protection rules, including an expansion of the tarmac delay rule and more money for passengers denied boarding. These rules are among the few that were not successfully deferred by the airline industry which convinced the DOT to push the implementation of most of the other new regulations into 2012.

The most widely-publicized provision set to take effect is the extension of the domestic 3-hour tarmac delay limit to nearly all U.S. airports and a new 4-hour delay limit for international departures from the U.S. The rules will now include flights by foreign carriers. Additionally, a passenger who is bumped from a flight due to overbooking will now be entitled to a minimum of 200 percent of the fare paid up to US$650 if the airline can reroute him or her in time to arrive within 2 hours of the original schedule (4 hours for international flights). For a longer wait, a passenger will be entitled to 400 percent of the paid fare up to US$1300.

Speaking of delays, the airlines did get some breathing room after the DOT agreed to defer other provisions of the passenger protection rules to allow the airlines more time to prepare their systems and staff. Among the delayed rules are:

• The inclusion of baggage fees on e-ticket confirmations.

• Notification of add-on fees via all booking channels and at all stages of shopping for flights.

• Allowing passengers to cancel a reservation up to 24 hours after purchase.

• The inclusion of the full fare, including all taxes and fees, in all advertisements.

• The prohibition of fare increases once a ticket is purchased.

• The requirement that airlines apply the same baggage allowances and fees to a passenger's entire itinerary. For codeshare flights, the policies and fees of the marketing carrier whose code is displayed rather than the operating carrier will prevail.

• A mandate that airlines publish information about known delays, cancellations or changes in the status of a flight within 30 minutes of becoming aware, by making the information available at the boarding gate, on the Web and (upon request) via call centers.

Court challenges have been filed by several airlines, particularly against the DOT rule that would keep airlines from raising the fare on a ticket once it is purchased. Often, a passenger needing to make a change has to pay the difference to the new applicable fare on top of a ticket change fee. Thus far, the delayed rules are set to take effect on 24 January but stay tuned. As the day approaches we'll see if new requests for further deferments start coming in.

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