DOT 53-08
Contact: Brian Turmail, Tel.: (202) 366-4570
Wednesday, April 16, 2008
U.S. Transportation Secretary Peters Announces New Measures to Improve Air Travel Experience
U.S. Transportation Secretary Mary E. Peters today announced a
series of new aviation measures to strengthen passenger protections, improve
consumer choice and reduce congestion, including doubling the limits on
compensation airlines must pay flyers bumped from oversold flights and
establishing operational improvements to cut delays this summer.
“We are taking steps to improve the travel experience, cut delays and lower
fares in one of America’s busiest aviation markets,” Secretary Peters said.
The Department today finalized changes to its so-called bumping rule, which
doubles the limit on compensation airlines must pay passengers who are
involuntarily bumped from their flight. Under the new rule which goes into
effect next month, fliers who are involuntarily bumped would receive up to $400
if they are rescheduled to reach their destination within two hours of their
original arrival time or four hours for international flights, and up to $800 if
they are not rerouted within that timeframe.
The new rule also covers more flights, including those operated with aircraft
seating 30 people or more; the current rule covers flights with 60 seats or
more. The amount of these payments are determined by the price of the ticket and
the length of the delay, and are in addition to the value of the passenger’s
ticket, which the flyer can use for alternate transportation or have refunded if
not used.
“It’s hard to compensate for a missed family occasion or business opportunity,
but this rule will ensure flyers are more fairly reimbursed for their
inconvenience,” Secretary Peters said.
The Secretary also announced new air traffic measures designed to help cut
delays this summer. The first involves new and greater flexibility for aircraft
to use alternative routes in the sky to avoid severe weather. This includes a
new routing alternative that provides an “escape route” into Canadian airspace
from the New York metropolitan area so airlines can fly around summer
thunderstorms and high winds.
In addition, the FAA will open a second westbound route for aircraft, akin to
adding another interstate highway lane in the sky. This would in effect provide
a parallel route along a heavily-traveled aviation corridor, helping cut
westbound delays from the New York area.
“By making better use of our skies, we are working to limit the impact weather
has on travelers on the ground,” Secretary Peters said.
The Secretary said the Department also is proposing a new way to manage
congestion at New York’s LaGuardia Airport. Even though this facility has been
capped since 1968, it is still consistently one of the top three most delayed
airports in the nation, she said. Under a supplemental rulemaking announced
today, the Department is proposing two market-based options that would require a
limited number of flights operated by the airlines in a given day, known as
slots, to be made available through an auction process.
“This proposal increases choices for passengers and adds competition, which is
proven to lower fares. It also cuts delays and funds new aviation capacity
projects for the region,” Secretary Peters said.
Under the first option, all air carriers would be given up to 20 slots a day for
the 10 year life of the rule. Meanwhile, over the next five years, 8 percent of
the additional slots currently used by an airline would be made available to any
carrier via an auction. An additional 2 percent of the slots would be retired to
help cut the record delays at the airport. Proceeds from the auction would be
invested in new congestion reduction and capacity improvement initiatives in the
New York region.
The second option also gives airlines permanent access to up to 20 slots a day
for a 10 year period. Beyond those flights, 20 percent of the slots currently
used by the airlines would be made available over the next five years to all
airlines through an auction. Under this option, the carriers would retain the
net proceeds of the auction.
The Secretary said both options provide financial stability to the airlines
operating at LaGuardia by providing them with a defined right to operate at the
airport for a decade, something they do not have today. These rights are given
in recognition of the significant financial investment the airlines have made in
the airport’s infrastructure, she said.
“Our plan strikes a sound balance between protecting investments by incumbent
carriers and ensuring that all airlines have the ability to fly to New York’s
LaGuardia,” Secretary Peters said. “While the status quo at LaGuardia has led to
stagnant service, delays and unnecessarily high fares, open access and
competition will help give flyers more choices, fewer delays and lower fares.”
Overall, the Secretary said improving the passenger experience is central to the
Department’s efforts and that she wanted to hear directly from travelers how
they are being impacted by problems in the air travel industry. To do so, she
has launched a series of Aviation Consumer Forums to hear from consumers and
help educate air travelers about their rights and responsibilities. The first
DOT-hosted forum is scheduled for tomorrow, April 17, in Miami, to be followed
by public meetings in Chicago and San Francisco in the near future.
Further information on the Department’s bumping rule or LaGuardia Airport
congestion rule, go to
http://www.fightgridlocknow.gov/aviation.htm
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