Enhancing Airline Passenger Protections, 74586-74603 [E8-28527]
Download as PDF
74586
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 234, 259, and 399
[Docket No. DOT–OST–2007–0022]
RIN No. 2105–AD72
Enhancing Airline Passenger
Protections
AGENCY: Office of the Secretary (OST),
Department of Transportation (DOT).
ACTION: Notice of proposed rulemaking
(NPRM).
SUMMARY: The Department of
Transportation seeks comment on rules
it is proposing to enhance airline
passenger protections in the following
ways: by requiring air carriers to adopt
contingency plans for lengthy tarmac
delays and incorporate them in their
contracts of carriage, by requiring air
carriers to respond to consumer
problems, by deeming the continued
operation of a flight that is chronically
late to be unfair and deceptive in
violation of 49 U.S.C. 41712, by
requiring air carriers to publish
information on flight delays on their
Web sites, and by requiring air carriers
to adopt customer service plans,
incorporate these into their contracts of
carriage, and audit their own
compliance with their plans. The
Department takes this action on its own
initiative in response to the many recent
instances when passengers have been
subject to waits on airport tarmacs for
very long periods and also in response
to the ongoing high incidence of flight
delays.
DATES: Comments should be filed by
February 6, 2009. Late-filed comments
will be considered to the extent
practicable.
You may file comments
identified by the docket number DOT–
OST–2007–0022 by any of the following
methods:
Æ Federal eRulemaking Portal: go to
https://www.regulations.gov and follow
the online instructions for submitting
written comments. A standard form has
been created for those who wish to use
it in submitting comments.
Æ Mail: Docket Management Facility,
U.S. Department of Transportation, 1200
New Jersey Ave., SE., Room W12–140,
Washington, DC 20590–0001.
Æ Hand Delivery or Courier: West
Building Ground Floor, Room W12–140,
1200 New Jersey Ave., SE., between 9
a.m. and 5 p.m. ET, Monday through
Friday, except Federal Holidays.
Æ Fax: (202) 493–2251.
rwilkins on PROD1PC63 with PROPOSALS2
ADDRESSES:
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
Instructions: We strongly encourage
you to use the standard form to submit
comments. To access the form, go to
https://www.regulations.gov and use the
SEARCH DOCUMENTS field provided
to input the docket number for this
rulemaking. Then, you can search the
index for ‘‘Public comment standard
form.’’ This form may then be moved to
your computer desktop, where you can
type in your comments. You may then
attach the form when you submit your
comments to the docket.
Using the standard form will
eliminate the need for you to type a
title, headings and questions since the
form identifies the rulemaking on which
you are commenting, sets out the
headings identified in the
SUPPLEMENTARY INFORMATION section of
this document and lists the questions
that we have asked in the NPRM. It will
also make it easier for you, other
commenters and the Department to
easily search or sort the comments
submitted on the various issues in the
rulemaking.
If you do not use the standard form,
you must include the agency name and
docket number DOT–OST–2007–0022
or the Regulatory Identification Number
(RIN) for the rulemaking at the
beginning of your comment. All
comments received will be posted
without change to https://
www.regulations.gov, including any
personal information provided.
Privacy Act: Anyone is able to search
the electronic form of all comments
received in any of our dockets by the
name of the individual submitting the
comment (or signing the comment if
submitted on behalf of an association, a
business, a labor union, etc.). You may
review DOT’s complete Privacy Act
statement in the Federal Register
published on April 11, 2000 (65 FR
19477–78), or you may visit https://
DocketsInfo.dot.gov.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov or to the street
address listed above. Follow the online
instructions for accessing the docket.
FOR FURTHER INFORMATION CONTACT:
Daeleen Chesley or Blane A. Workie,
Office of the Assistant General Counsel
for Aviation Enforcement and
Proceedings, U.S. Department of
Transportation, 1200 New Jersey Ave.,
SE., Washington, DC 20590, 202–366–
9342 (phone), 202–366–7152 (fax),
betsy.wolf@dot.gov or
blane.workie@dot.gov (e-mail).
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00002
Fmt 4701
Sfmt 4702
Background
On November 15, 2007, the
Department of Transportation (DOT or
Department) issued an Advance Notice
of Proposed Rulemaking (ANPRM) in
Docket DOT–OST–2007–22 entitled
‘‘Enhancing Airline Passenger
Protections.’’ This ANPRM was
published in the Federal Register five
days later. See ‘‘Department of
Transportation, Office of the Secretary,
14 CFR Parts 234, 253, 259, and 399
[Docket No. DOT–OST–2007–0022], RIN
No. 2105–AD72, 72 FR 65233 et seq.
(November 20, 2007).’’ We announced
in the ANPRM that we were considering
adopting or amending rules to address
several concerns, including, among
others, the problems consumers face
when aircraft sit for hours on airport
tarmacs and the growing incidence of
flight delays. We observed that
beginning in December of 2006 and
continuing through the early spring of
2007, weather problems had kept more
than a few aircraft sitting for long hours
on airport tarmacs, causing the stranded
passengers undue discomfort and
inconvenience. We observed further that
passengers were also being harmed by
the high incidence of less extreme flight
delays: In the first seven months of
2007, only 72.23 percent of flights
arrived on time, a lower percentage than
for the same period in any of the
previous 12 years. (On-time arrival
performance remains problematic: It has
improved only slightly since the
issuance of the ANPRM. For the first
five months of 2008, it was the second
worst for these months in 14 years.) We
acknowledged that the industry and
interested observers have attributed
both the marathon tarmac waits and the
epidemic of flight delays to a number of
factors besides weather, such as
capacity and operational constraints, for
example. Some of these are being
addressed by the Federal Aviation
Administration (FAA) and certain
airports in other contexts, but in the
meantime, we decided to explore the
adoption of regulatory measures to
address passengers’ concerns.
Thus, citing our authority and
responsibility under 49 U.S.C. 41712, in
concert with 49 U.S.C. 40101(a)(4) and
40101(a)(9) and 49 U.S.C. 41702, to
protect consumers from unfair or
deceptive practices and to ensure safe
and adequate service in air
transportation, we called for comment
on seven potential measures. We
intended these measures to ameliorate
difficulties that passengers experience
without creating undue burdens for the
carriers. We also posed questions for
commenters to answer and invited them
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
to suggest other measures to address the
problems at issue.
The measures proposed in the
ANPRM covered the following subjects:
Contingency plans for lengthy tarmac
delays, carriers’ responses to consumer
problems, chronically delayed flights,
delay data on Web sites, complaint data
on Web sites, reporting of on-time
performance of international flights, and
customer service plans. The specifics of
the ANPRM’s proposals are set forth
below in the context of the measures we
are proposing—or not proposing—in
this notice.
We received approximately 200
comments in response to the ANPRM.
Of these, 13 came from members of the
industry—i.e., air carriers, air carrier
associations, and other industry trade
associations—and the rest came from
consumers, consumer associations, and
two U.S. Senators. On the consumer
side, some 131 individual members of
the Coalition for an Airline Passengers
Bill of Rights (CAPBOR) filed identical
or nearly identical comments.
CAPBOR’s founder and spokesperson,
Kate Hanni, also filed comments with
additional material on behalf of both
CAPBOR and the Aviation Consumer
Action Project (ACAP). Another 34
unaffiliated individuals filed comments,
as did five other consumer associations:
ACAP, the National Business Travel
Association (NBTA), the Federation of
State Public Interest Research Groups
(US PIRG), Public Citizen, and the
National Consumers League.
On the industry side, four carriers
filed comments: Jet Airways (India),
Ltd., Delta Air Lines, Inc., China Eastern
Airlines, and Virgin Atlantic Airways,
Ltd. Five carrier associations filed
comments: The Association of Asia
Pacific Airlines (AAPA), the National
Air Carrier Association (NACA), the
International Air Transport Association
(IATA), the Air Transport Association of
America (ATA), and the Air Carrier
Association of America (ACAA). Two
travel agency associations, the American
Society of Travel Agents (ASTA) and
the Interactive Travel Services
Association (ITSA) also filed comments,
as did the Airport Council International,
North America (ACI–NA).
In general, the consumers and
consumer associations maintained that
the Department’s proposals do not go far
enough, while the carriers and carrier
associations attributed the current
problems mostly to factors beyond their
control such as weather and the air
traffic control system and tended to
characterize the proposals as
unnecessary and unduly burdensome.
The travel agency associations
expressed support for consumer
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
protections but not at their members’
expense. The commenters’ positions
that are germane to the issues raised in
the ANPRM are set forth below in the
context of the measures we are
proposing—or not proposing—here.
Notice of Proposed Rulemaking
Having considered the comments, we
have decided to propose rules to do the
following: (1) Require air carriers to
adopt contingency plans for lengthy
tarmac delays and to incorporate these
plans in their contracts of carriage, (2)
require air carriers to respond to
consumer problems, (3) declare the
operation of flights that remain
chronically delayed to be an unfair and
deceptive practice and an unfair method
of competition, (4) require air carriers to
publish delay data on their Web sites,
and (5) require air carriers to adopt
customer service plans, incorporate
these in their contracts of carriage, and
audit their adherence to their plans. We
have decided not to propose rules to
require air carriers to publish complaint
data on their Web sites or to report ontime performance of international
flights. We are proposing that the rules
take effect 180 days after their
publication.
We invite all interested persons to
comment on the proposals set forth in
this notice. Our final action will be
based on the comments and supporting
evidence filed in this docket, on our
own analysis and regulatory evaluation,
and on the ongoing work of our National
Task Force to Develop Model
Contingency Plans to Deal with Lengthy
Airline On-Board Ground Delays
(Tarmac Delay Task Force).
Proposals
1. Contingency Plans
The ANPRM: We stated in the
ANPRM that we were considering
requiring every certificated or commuter
air carrier1 that operates domestic
scheduled passenger service using any
aircraft with more than 30 passenger
seats to develop and implement a
1 A certificated air carrier is a U.S. direct air
carrier that holds a certificate issued under 49
U.S.C. 41102 to operate passenger and/or cargo and
mail service. Air taxi operators and commuter air
carriers operating under 14 CFR part 298 are
exempted from the certification requirements of 49
U.S.C. 41102. Some carriers that would otherwise
be eligible for the air taxi or commuter exemption
have opted to be certificated. An air taxi operator
is an air carrier that transports passengers or
property and is not a commuter air carrier as
defined in 14 CFR part 298. A commuter air carrier
is an air taxi operator that carries passengers on at
least five round trips per week on at least one route
between two or more points according to a
published flight schedule, using small aircraft—i.e.,
aircraft originally designed with the capacity for up
to 60 passenger seats. See 14 CFR 298.2.
PO 00000
Frm 00003
Fmt 4701
Sfmt 4702
74587
contingency plan for lengthy tarmac
delays. (This plan would apply to all of
the carrier’s flights, including those
involving aircraft with 30 or fewer
seats.) Each covered carrier would be
required to incorporate its plan in its
contract of carriage. This would enable
passengers to sue for breach of contract
in the event that a carrier fails to adhere
to its plan. Each plan would have to
include at least the following: The
maximum tarmac delay that the carrier
will permit, the amount of time on the
tarmac that triggers the plan’s terms,
assurance of adequate food, water,
lavatory facilities, and medical
attention, if needed, while the aircraft
remains on the tarmac, assurance of
sufficient resources to implement the
plan, and assurance that the plan has
been coordinated with airport
authorities at medium and large hub
airports. Carriers would also be required
to make their complete contracts of
carriage, including contingency plans,
available on their Web sites and to
retain for two years the following
information for any ground delay that
either triggers their contingency plans or
lasts at least four hours: The length of
the delay, the cause of the delay, and
the actions taken to minimize hardships
for passengers. Our proposal did not
contemplate that the Department would
review or approve the plans, but we
stated that the Department would
consider failure to comply with any of
the above requirements—including
implementing the plan as written—to be
an unfair and deceptive practice within
the meaning of 49 U.S.C. 41712 and
therefore subject to enforcement action.
The Comments: CAPBOR and its
members believe that this proposal does
not go far enough. They maintain that
the Department should establish
minimum standards for contingency
plans via regulation and should also
review and approve the plans rather
than allow each carrier the leeway to set
what might well be overly lax standards.
They also maintain that the Department
should monitor carriers’ performance
under their plans. In their view,
requiring carriers to incorporate their
contingency plans into their contracts of
carriage will not protect passengers,
because as a practical matter these
contracts cannot be enforced. They do
support publication of contingency
plans in contracts of carriage, however,
and they argue that these plans should
be airport-specific to account for
differences among airports. CAPBOR
and its members contend that because
an airport’s concessions are often closed
by the time that a flight is cancelled and
passengers allowed to deplane, we
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74588
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
should require airports to contract with
their vendors to require that concessions
remain open during lengthy tarmac
delays. They request that in any rule
proposed or adopted, we refer to
‘‘potable water’’ and ‘‘operable
lavatories’’ rather than simply ‘‘water’’
and ‘‘lavatory facilities,’’ respectively,
and that we include a requirement for
adequate ventilation.
Individual commenters make similar
points. For example, they, too, tend to
oppose allowing the carriers to set their
own standards, particularly those
involving the amount of time that
triggers the provisions of the
contingency plans or the maximum
amount of time on the tarmac before the
carrier must return to a gate and allow
passengers to deplane.
Of the other consumer associations,
ACAP concurs with CAPBOR, as does
U.S. PIRG. The latter suggests three
hours as the maximum interval before
passengers are allowed to deplane. Also
concurring with CAPBOR are Public
Citizen and the National Consumers
League. NBTA has a different point of
view: It contends that customer service
is by nature market driven and that
airlines are better situated than the
government to gauge both their
customers’ expectations and whether
putative protective measures afford
benefits that outweigh their costs—costs
that will inevitably be passed on to the
traveling public. NBTA does not
support requiring the carriers to develop
and publish contingency plans, but it
believes that carriers that do not do so
will provide poorer service and thus
lose business. What NBTA does support
is a requirement that carriers provide
what it calls ‘‘baseline passenger’s
rights’’ in whatever way they find most
effective and cost efficient. NBTA’s list
of these rights includes access to
lavatory facilities, access to water or
other liquids, access to food for tarmac
delays lasting more than six hours, ways
for passengers with medical
emergencies to request and receive
medical attention, and cabin
temperature suitable for normal travel
attire. NBTA also supports requiring
carriers to maintain records on lengthy
tarmac delays as a tool for the
Department and others to use for
analyzing airline performance.
Senators Barbara Boxer and Olympia
Snowe take the position that the
Department should set minimum
standards for protecting passengers
during lengthy tarmac delays. They
believe that passengers should be
permitted to deplane after three hours
on the tarmac.
As for members of the industry, Delta,
the sole carrier that commented
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
individually on this proposal, both
supports the principle of contingency
plans for lengthy tarmac delays and
states that it has one already. Its plan
does not have a time limit for tarmac
delays, however, because in Delta’s
judgment passengers fare better overall
if Delta retains the flexibility to respond
to each situation as it deems appropriate
at the time. It contends, for example,
that categorically requiring the return of
planes to the gate after a specified
interval would probably result in more
flight cancellations than occur now.
Delta opposes mandating coordination
with airport authorities in the
preparation of a contingency plan as
‘‘unnecessary and potentially
unmanageable.’’ Delta does not object to
a record-retention requirement, but it
believes that two years’ retention is too
long and that six months would suffice.
It maintains that any such requirement
should be triggered by a uniform delay
interval, set by the Department, rather
than be permitted to vary from carrier to
carrier according to disparate
contingency plans; Delta itself believes
four hours to be a reasonable standard.
Delta does not address whether the
contingency plans should be
incorporated into the contracts of
carriage.
Of the carrier associations that
commented on this proposal, NACA
agrees in principle that carriers should
meet their passengers’ needs for food,
water, lavatories, and, if necessary,
medical attention during extraordinary
ground delays and that they should
formulate contingency plans for
achieving this goal. NACA thinks that
the Department should work with the
carriers to develop guidance on the
following questions: What kinds of food
should passengers reasonably expect
during a long delay; what should be
required on flights whose aircraft have
limited or no kitchen resources because
no food service is provided in normal
circumstances; what should be expected
of carriers whose aircraft lack storage
capability for additional ‘‘emergency’’
food and that have no catering facilities
and no contract for catering services at
the airport at which they are delayed;
and what sort of medical attention and
supplies can passengers reasonably
expect? NACA opposes inclusion of
carriers’ contingency plans in their
contracts of carriage, because the
contracts are legally binding, so
passengers would have a private right of
action against any carrier that did not
adhere to the provisions of its plan.
‘‘Given the vagaries of what would
constitute appropriate emergency
services,’’ NACA states, ‘‘and in the
PO 00000
Frm 00004
Fmt 4701
Sfmt 4702
absence of a specific statutory mandate,
we believe that the inclusion of such
provisions within the contract of
carriage exposes carriers to a myriad of
unfounded lawsuits.’’ In lieu of
incorporation of the contingency plans
in the contracts of carriage, NACA
supports requiring that each carrier
provide public notice of its plan—for
example, by including a notice on its
Web site, by posting notices at check-in
counters, or by including a notice in its
in-flight magazine or in other materials
available to passengers on the plane. It
suggests that the Department could
require all carriers to provide it with
copies of their plans and then itself
make the plans available to the public.
NACA’s comments are endorsed by
ACAA.
ATA commented extensively on this
proposal, and IATA supports ATA’s
comments. ATA prefaced its comments
by asserting that the Department should
focus on addressing the root causes of
delays, which it characterizes as
‘‘insufficient airspace capacity and an
operating environment handcuffed by
outdated radar technology,’’ in addition
to calling for passenger protections.
ATA agrees in principle that carriers
should have contingency plans for
lengthy tarmac delays, provided that
each air carrier is permitted to decide on
the details of its own plan based on its
own unique facilities, equipment,
operating procedures, and network.
ATA not only supports the
Department’s proposal not to prescribe
the terms of carriers’ contingency plans,
but it particularly opposes a set interval
of time after which an aircraft must be
returned to the gate, claiming that such
a requirement would do passengers
more harm than good. Among the
potential negative consequences ATA
lists are the required return to the gate
when the aircraft is next in line for
takeoff, potential conflicts with
governmental orders during a pandemic
that passengers be kept on aircraft, and
conservative decisions that result in
wasting passenger, aircraft, and crew
time and affect downstream connecting
passengers adversely. ATA also argues
that a strict requirement that aircraft
return to the gate after a set interval
would stifle competition: It reasons that
carriers might otherwise choose
alternate ways to address the competing
passenger interests and needs that arise
during a lengthy tarmac delay.
ATA reports that carriers already have
both general contingency plans and
airport-specific contingency plans. It
states that carriers do not intend to
publish the latter, and it recommends
that the Department allow them
flexibility in how they notify consumers
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
of the former. Most carriers, it assumes,
would post their contingency plans on
their Web sites. ATA opposes requiring
carriers to include their contingency
plans in their contracts of carriage and
in fact doubts that the Department has
the authority to do this in the aftermath
of deregulation. As a practical matter,
ATA claims, inclusion of carriers’
general contingency plans in their
contracts of carriage would require the
deletion of technical and operational
terms that do not belong in a contract
and the addition of qualifying
statements so that carriers would retain
the flexibility to make different
operational decisions depending on the
facts of the situation, including
extraordinary circumstances. ATA also
opposes requiring incorporation of
contingency plans in carriers’ contracts
of carriage because this would expose
them to litigation under inconsistent
standards among the states and among
foreign countries. It predicts that
standards would fluctuate as carriers
took steps to minimize their exposure.
ATA opposes the proposed
recordkeeping requirement as
redundant of other existing and
proposed regulations.
RAA prefaced its comments by asking
the Department to keep in mind, when
proposing rules, what it characterizes as
‘‘the unique relationship between most
regional airlines subject to the proposals
* * * and their passengers.’’ RAA states
that over 90 percent of its members’
passengers fly under ticketing,
marketing, scheduling, and passenger
processing and handling arrangements
that are controlled by the major-carrier
partners of RAA’s members—in fact,
these passengers’ contracts of carriage
are with the major carrier, not the
regional airlines. RAA states further that
while its members are responsible for
operating their flights safely and can
cancel or divert them for reasons of
safety, most delays, diversions, and
cancellations are determined by the
FAA or the regional airlines’ majorcarrier partners. RAA opposes
regulations that would burden its
`
members vis-a-vis the railroads and bus
companies with which they compete for
passengers.
Regarding contingency plans, RAA
asks the Department to let airlines adopt
plans that reflect their own
circumstances, capabilities, and
passenger service standards. It asks the
Department to apply requirements for
contingency plans and recordkeeping
only to the airline that has a contract of
carriage with the passenger and also to
require contingency plans of ‘‘other
critical parties such as the FAA and the
airports.’’ In RAA’s view, requiring
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
enforceable contingency plans would be
contrary to deregulation and as a
practical matter would prevent carriers
from responding flexibly to the many
kinds of delays that occur. It states that
because contingency planning varies
from airport to airport, requiring a
contingency plan for each airport to be
published and enforced through the
contract of carriage would be both
impracticable and burdensome. RAA
opposes requiring carriers to retain
records on delayed flights, both as
redundant of existing requirements of
the Department’s Bureau of
Transportation Statistics and as a
burden that would yield little if any
public benefit. RAA contends that its
members are constrained not only by
their major-carrier partners’ control over
delay decisions and their differing
standards for passenger service but also
by the capacity constraints of their own
aircraft—aircraft with limited capacity
for food, water, and lavatory facilities. If
contingency plans are to be required,
RAA takes the position that they should
only be required of major carriers, with
implementation to be arranged by the
major carrier and its regional airline
partners on flights operated with aircraft
with more than 30 passenger seats. RAA
opposes coverage of flights operated
with smaller aircraft.
ACI–NA supports this proposal and
states that it recently convened a
meeting of more than 100 officials from
airports, airlines, passenger
organizations, and the federal
government to develop an outline for a
contingency plan. Along with ‘‘best
practices’’ in place at North American
airports, this plan will be provided to
the Department’s Tarmac Delay Task
Force.
Of the travel agency associations,
ASTA strongly favors requiring carriers
to adopt contingency plans and
requiring the incorporation of these
plans in air carriers’ contracts of
carriage, but it believes that the proposal
in the ANPRM does not go far enough.
ASTA implies, without explanation,
that even with the plans incorporated in
the contracts of carriage, they will not
be enforceable unless the Department
reviews them. ASTA suggests that any
rule that we adopt ‘‘require very specific
plans in the general mode of ‘if this
happens, we will take the following
specific steps to assure proper care of
passengers.’ ’’ ASTA also supports the
recordkeeping requirement and suggests
that it be triggered by a delay of three
hours. Also, ASTA believes that carriers
should be required to coordinate not
only with airport authorities at medium
and large hub airports but with the
PO 00000
Frm 00005
Fmt 4701
Sfmt 4702
74589
authorities at ‘‘all primary airports.’’
ITSA did not address this proposal.
Proposed Rule: We have decided to
propose a rule along the lines set forth
in the ANPRM, and we invite comment
from all interested persons. Specifically,
we propose to adopt a new rule, 14 CFR
part 259, which, among other things,
would require any certificated or
commuter air carrier that operates
domestic passenger service using any
aircraft with a design capacity of more
than 30 passenger seats to develop a
contingency plan for long tarmac delays
of scheduled and public charter flights
and to adhere to this plan’s terms. This
plan would apply to all of the carrier’s
scheduled and public charter flights,
including those with aircraft having a
design capacity of 30 or fewer seats. We
are not proposing that the rule cover
single-entity charters and other charters
in which consumers have some
bargaining leverage. The rule would
require each carrier to incorporate its
contingency plan in its contract of
carriage. At a minimum, each plan must
include the following: The maximum
tarmac delay that the carrier will permit,
the amount of time on the tarmac that
will trigger the plan’s terms, the
assurance of adequate food, water, and
lavatory facilities, as well as medical
attention if needed, while the aircraft
remains on the ground, assurance of
sufficient resources to implement the
plan, and assurance that the plan has
been coordinated with airport
authorities at medium and large hub
airports. The rule would require carriers
to retain for two years the following
information on any on-ground delay
that either triggers their contingency
plans or lasts at least four hours: The
length of the delay, the cause of the
delay, and the steps taken to minimize
hardships for passengers (including
providing food and water, maintaining
lavatories, and providing medical
assistance). Failure to do any of the
above would be considered an unfair
and deceptive practice within the
meaning of 49 U.S.C. 41712 and subject
to enforcement action, which could
result in an order to cease and desist as
well as the imposition of civil penalties.
In adopting this approach, we are
tentatively rejecting the suggestions of
those consumers and groups who
believe that the Department should set
minimum standards for the contingency
plans rather than allow each carrier to
set its own standards based on its
particular circumstances. We continue
to be of the tentative view based on the
information available to us that the
Department should not substitute its
judgment in this area for that of the air
carriers. Nevertheless, we ask interested
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74590
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
persons to comment on whether any
final rule that we may adopt should
include either or both of the following:
A uniform standard for the time interval
that would trigger the terms of carriers’
contingency plans and a uniform
standard for the time interval after
which carriers would be required to
allow passengers to deplane.
Commenters who support the adoption
of either or both requirements by
rulemaking should propose specific
amounts of time and state why they
believe these intervals to be appropriate.
As for incorporation of the
contingency plans in carriers’ contracts
of carriage, at this stage we are
tentatively rejecting consumers’
arguments that this requirement would
be ineffectual, because no commenter
has provided any support for its
assertion that as a practical matter the
contracts of carriage cannot be enforced,
particularly where class-action litigation
is available. We are also tentatively
rejecting carriers’ arguments that we
should not require incorporation
because this would subject them to the
risk of inconsistent standards among the
various jurisdictions. This risk exists
already, since the carriers’ contracts of
carriage are enforceable in state courts,
and it is not increased with the addition
of new enforceable terms to these
contracts. ATA has failed to establish
that we lack the authority to require that
contingency plans be incorporated in
carriers’ contracts of carriage. Our broad
authority under 49 U.S.C. 41712 to
prohibit unfair and deceptive practices
encompasses this power. Indeed, 14
CFR part 253 shows that we have the
authority not only to require that
contracts of carriage include specified
terms but also to regulate the means by
which contract terms are disclosed to
consumers. We tentatively believe that
in providing for private enforcement of
the plans as well as enforcement action
by the Department, we are creating a
stronger incentive for carriers to adhere
to their plans. We invite interested
persons to comment on the implications
of our creating a private right of action
based on a carrier’s failure to follow the
terms of its contingency plan.
Commenters should address the
potential for multiple lawsuits by
classes as well as individual plaintiffs
and the potential for inconsistent
judicial decisions among the various
jurisdictions. Commenters should also
address whether and to what extent
requiring the incorporation of
contingency plans in carriers’ contracts
of carriage might weaken existing plans:
That is, would the requirement
encourage carriers to exclude certain
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
key terms from their plans in order to
avoid compromising their flexibility to
deal with circumstances that are both
multifarious and unpredictable?
As for the other points made by
consumers, we are not proposing to
require the plans to be airport-specific,
although carriers may choose to adopt
different standards for each airport in
their plans. We are not proposing here
to require airports to provide for
concessions to remain open during
lengthy tarmac delays, in part because
we doubt that we have the authority to
do so. Our proposed rule does not refer
to ‘‘potable water’’ or ‘‘operable
lavatories,’’ because water and lavatory
facilities that are ‘‘adequate’’ are
necessarily potable and operable,
respectively. Furthermore, the quality of
drinking water on aircraft is regulated
by the Environmental Protection Agency
(EPA). Our proposed rule does not
address ventilation, because we have no
basis at this stage to assess the adequacy
of ventilation or to require potentially
significant modifications to aircraft.
As for the other points made by
carriers, those that rank operational
flexibility as their highest priority are
free to adopt a relatively long interval as
their standard for returning a plane to
the gate and allowing passengers to
deplane. Were a carrier to follow this
strategy only to see its market shares
´
declining vis-a-vis its competitors with
shorter intervals in their contingency
plans, the carrier could amend its plan
accordingly. Conversely, were a carrier
to decide that it wanted to amend its
plan to allow itself more time before
returning the aircraft to the gate, the
proposed rule provides that the
amended plan would only apply to
flights that the carrier has not yet
offered for sale. This condition would
protect consumers who have booked
flights under the impression that they
will not be kept on the tarmac more
than, say, three hours from the
unpleasant discovery that by the time
they actually fly the carrier has
amended its contingency plan to make
that interval six hours.
As for RAA’s requests that we treat
regional carriers and their larger-carrier
code-share partners differently, we have
decided not to do so at this stage in the
rulemaking process. The rule that we
are proposing would apply to both
partners in a code-share arrangement,
because even if the determination to
cancel a flight or keep it on the tarmac
is made by the major carrier or results
from action by the FAA, it is the carrier
operating the flight that remains directly
responsible for the passengers for the
duration of the delay. We expect that
the major carriers and their regional
PO 00000
Frm 00006
Fmt 4701
Sfmt 4702
code-share partners would collaborate
on their contingency plans to come up
with standards that suit both parties. We
recognize that the regional carriers’
plans would reflect the limited size and
capacity of their aircraft, and nothing in
the rule would bar a regional carrier
from providing differently for aircraft of
different sizes.
Nevertheless, while we are proposing
here not to treat regional carriers and
larger carriers differently in the rule, we
invite interested persons to comment on
whether, in the event that we adopt a
rule requiring contingency plans, we
should limit its applicability to carriers
that operate large aircraft—i.e., aircraft
originally designed to have a maximum
passenger capacity of more than 60
seats. Proponents of this alternative
approach should provide arguments and
evidence in support of their position, as
should opponents.
2. Response to Consumer Problems
The ANPRM: This proposal would
require every certificated and commuter
air carrier that operates domestic
scheduled passenger service using any
aircraft with a design capacity of more
than 30 passenger seats to address
mounting consumer problems in the
following ways: At its system operations
center and at each airport dispatch
center, designate an employee to be
responsible for monitoring the effects of
flight delays, flight cancellations, and
lengthy tarmac delays on passengers
and have input into decisions such as
which flights are cancelled and which
are subject to the longest delays; on its
Web site, on all e-ticket confirmations,
and, on request, at each ticket counter
and gate, inform consumers how to file
a complaint with the carrier (name of
person or office, address, and telephone
number); and send a response to each
consumer complaint received within 30
days of receipt.
The Comments: CAPBOR and its
members support the proposal and take
the position that carriers should be
required to provide postal addresses,
telephone numbers, and e-mail
addresses for customer service, to
acknowledge receipt of a complaint
within 24 hours, to resolve the
complaint within 30 days of receiving it,
and to notify the Department if the
passenger disagrees with the resolution.
In addition, CAPBOR calls for a
requirement that consumers’ complaints
to the carriers and complaints that the
Department refers to the carriers be
combined and tabulated by category,
with the results made available to the
public every month.
Of the individual commenters, one
agrees in principle with the proposal
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
but voices concern over the cost of
creating a position at each airport for
responding to complaints, reasoning
that this would not affect delays.
Another voices concern that not all
consumers have access to the Internet
and favors requiring travel agents to
provide the information on where to
complain as well.
Of the other consumer associations,
ACAP and U.S. PIRG concur with
CAPBOR, Public Citizen concurs with
CAPBOR and U.S. PIRG, and the
National Consumer League concurs with
U.S. PIRG. NBTA, in contrast,
characterizes the proposal as
micromanagement of airline customer
service. NBTA maintains that most if
not all carriers have customer service
departments to address problems that
arise and that poor responses will affect
consumers’ business decisions.
Delta is again the only carrier that
commented individually on this issue.
Delta deems a regulation requiring the
designation of carrier employees
responsible for what it characterizes as
responding to and managing extended
ground delays and flight cancellations,
and prescribing such employees’
locations, to be unnecessary, because
such a requirement is implicit if the
Department mandates contingency
plans. Delta is concerned, moreover,
that the proposal could work to
undermine carriers’ ability to establish
processes and management hierarchies
that ensure compliance with their
contingency plans. Delta states that it is
committed to providing multiple
customer-friendly channels for
complaints, and given the rapid
development of communication
technologies, the carrier opposes
making the use of particular channels
mandatory. Delta opposes a 30-day
requirement for responding to consumer
complaints and posits 60 days as the
current industry standard. It cautions
that in cases involving international
travel, particularly under code-sharing
arrangements, ‘‘coordinating the best
solution for the customer may require
more than 30 days, especially if a
detailed investigation is needed.’’ In
addition, Delta is concerned that
seasonal surges in complaint volume or
unexpected events could mean financial
hardship for a carrier that was required
to increase staffing temporarily to
respond to all complaints within 30
days.
Of the carrier associations, NACA
states that its members already monitor
their flight operations at each airport
and maintains that it should be up to
each carrier to decide if it wants to have
this be one employee’s sole
responsibility or include it with an
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
employee’s other responsibilities. As for
responding to complaints, NACA
contends that the Department should
specify how complaints are to be lodged
with the carriers if it is going to require
a response to each complaint. Whether
the complaint is handed to an airline
agent at the airport, submitted via email, or sent by U.S. mail, the
complainant should be required to have
proof that the carrier received the
complaint. NACA believes 30 days to be
insufficient for responding to
complaints but would accept a 45-day
requirement even though it prefers 60
days. NACA’s comments are endorsed
by ACAA.
ATA, with IATA’s endorsement,
supports requiring carriers to respond to
consumer problems and cites the
voluntary commitments to do so that a
number of carriers have long had in
place. ATA states that its members agree
that consumers should receive
responses to their complaints within 30
days when practicable, provided that by
‘‘response’’ the Department means
notification that a complaint has been
received and is being reviewed and that
by ‘‘complaint’’ the Department means a
passenger’s complaint that raises
customer service concerns and that is
submitted to the carrier’s customer
relations department. It contends,
however, that resolving complaints in
only 30 days is difficult if not
impossible. ATA supports the idea of
designating an employee at a carrier’s
systems operations center to monitor the
effects of flight delays and cancellations,
provided that the designee is a current
employee who carries out other
responsibilities as well. It does not
support requiring such an employee at
each airport dispatch center, claiming
that this would duplicate existing
procedures and would strain carriers’
resources without lessening the
problems that consumers face. ATA
supports allowing each carrier to choose
the means by which it receives
complaints and responds to them, and
it supports requiring carriers to post
information on contacts for complaints
on their Web sites. It opposes requiring
this information on e-tickets as
redundant, if the information is on the
carriers’ Web sites, and burdensome, as
carriers would have to change the
printing format for e-tickets to
accommodate the new information.
Thus, ATA argues, the benefit of
including complaint information on etickets would outweigh the cost,
particularly in the absence of any
evidence that users of e-tickets are
experiencing any difficulty in finding
this information at present.
PO 00000
Frm 00007
Fmt 4701
Sfmt 4702
74591
RAA urges the Department to let
carriers monitor the effects on
passengers of flight delays, flight
cancellations, and lengthy tarmac delays
by whatever means they choose, given
the wide variety of circumstances
among all carriers and between major
and regional carriers. It asserts that for
its members, designating a single person
rather than making all employees
responsible for taking passengers’
interests into account might be wasteful
if not counterproductive given how they
may well have little if any control over
decisions on delays, diversions, and
cancellations. As far as consumer
complaints are concerned, RAA asserts
that the best means for giving contact
information may similarly vary among
carriers and between major and regional
carriers. Tickets for RAA’s members’
code-share services are typically sold
and issued by their major-carrier
partners, which often staff the ticket
counters and gates that consumers use
as well. Under these circumstances,
RAA contends, its member carriers
should not be held responsible for
telling consumers how to file
complaints. RAA states that when a
major carrier receives a complaint that
involves its regional carrier partner, it
coordinates with the latter to gather
facts so that it can respond to the
consumer. Like ATA, RAA maintains
that 30 days is sufficient for
acknowledging receipt of a complaint
but too little time for resolving one.
Finally, RAA takes the position that any
requirements adopted should only
apply to flights operated with aircraft
seating at least 30 passengers and not to
flights operated with smaller aircraft.
ACI–NA supports this proposal but
did not specifically address it.
Of the travel agency associations,
ASTA agrees in principle with carriers’
having an employee responsible for
monitoring the effects of schedule
disruptions on passengers and having
input in the decisions made but doubts
that this requires as many individuals as
the proposal contemplates given current
communications technology. ASTA
supports a period of 30 days for
responding substantively to consumer
complaints. It opposes allowing
individual carriers to choose how
complaints may be filed, supporting
instead a uniform requirement that
complaints be accepted by telephone, by
U.S. mail, and by e-mail. ITSA did not
address this issue.
Proposed Rule: We have decided to
propose a rule along the lines set forth
in the ANPRM, and again we invite
comment from all interested persons.
Specifically, our proposed new rule, 14
CFR part 259, includes a requirement
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74592
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
that every certificated and commuter air
carrier that operates scheduled domestic
passenger service using any aircraft with
a design capacity of more than 30
passenger seats respond to consumer
problems concerning its scheduled
flights in three ways. First, at its systems
operations center and at each airport
dispatch center, the carrier would have
to designate an employee who monitors
the effects of flight delays, flight
cancellations, and lengthy tarmac delays
on passengers and has input into
decisions on which flights to cancel and
which to delay the longest. We
anticipate that these responsibilities
would be borne by current employees in
addition to their other responsibilities;
we do not intend for any carrier to have
to hire new employees to comply with
this regulation. Second, on its Web site,
on all e-ticket confirmations, and, upon
request, at each ticket counter and gate,
the carrier would have to inform
consumers how to file a complaint by
providing the name, address, telephone
number, and e-mail or Web-form
address of the appropriate person or
office. Carriers would be given 180 days
to modify their Web sites and reformat
their e-tickets before this requirement
would take effect. Third, for each
complaint filed, the carrier would have
to acknowledge receipt to the consumer
within 30 days and provide a
substantive response within 60 days of
receiving it. By ‘‘substantive response,’’
we mean a response that addresses the
specific problems about which the
consumer has complained. We are not
proposing that this provision cover
public charter operations. Complaints
about public charter flights are filed not
with the carrier but with the Public
Charter Operator; also, the carriers
operating these flights may not have
employees at each airport that they
serve.
In adopting this approach, we are
tentatively rejecting as unrealistic
CAPBOR’s contention that we should
require acknowledgement of a
complaint’s receipt within 24 hours and
a resolution of the complaint within 30
days. The deadlines that we are
proposing represent standard practice in
the industry and should allow carriers
adequate time to investigate and
respond appropriately. We are
addressing carriers’ opposition to hiring
new employees to do work that is
redundant by clarifying that this is not
our intent. We are tentatively rejecting
carriers’ arguments that we should not
make any particular complaint channel
mandatory, because we recognize that
not all consumers have access to the
Internet. Some consumers traveling on
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
e-tickets purchased by a third party or
by telephone may not have access to the
Internet themselves. We are tentatively
rejecting ATA’s contention that
requiring carriers to provide information
on e-tickets regarding how to complain
is redundant and burdensome, because
ATA has not supported this contention.
Under the proposed rule, an electronic
e-ticket confirmation or itinerary may
include a link to the complaint
information in lieu of displaying the
entire text. We invite ATA to provide
evidence on the costs to carriers of
changing the format for e-tickets to
accommodate the new information in its
comments on this proposal. We are
tentatively rejecting RAA’s contention
that its members should not be required
to tell consumers how to file
complaints. The rule by its terms would
not require those regional carriers that
do not have Web sites or ticket counters
or issue e-tickets to provide information
on filing complaints via these channels.
Passengers of these carriers who wish to
complain should be able to find out at
the gate how to do so. RAA provides no
basis for its assertion that flights
operated with aircraft seating fewer than
30 passengers should be exempt from
this requirement.
3. Chronically Delayed Flights as
Violations of 49 U.S.C. 41712
The ANPRM: This proposal would
codify the Department’s 2007
enforcement policy on chronically
delayed flights. The proposed new text
would define a chronically delayed
flight as a flight by a covered carrier that
is operated at least 45 times in a
calendar quarter and arrives more than
15 minutes late more than 70 percent of
the time. It would define a covered
carrier as one that reports on-time
performance data to the Department
under 14 CFR part 234—i.e., a
certificated U.S. carrier that accounts for
at least one percent of domestic
scheduled passenger revenue. The text
would state that the Department
considers a chronically delayed flight to
be an unfair and deceptive practice and
an unfair method of competition within
the meaning of 49 U.S.C. 41712 if it is
not corrected before the end of the
second calendar quarter following the
one in which it is first chronically
delayed.
The Comments: CAPBOR supports
this proposal but believes that carriers
should not be allowed a full six months
to correct chronically delayed flights
and that the Department should
automatically impose civil penalties
whenever a flight becomes chronically
delayed in any given quarter. CAPBOR
also favors stricter standards than the
PO 00000
Frm 00008
Fmt 4701
Sfmt 4702
ones that we proposed: Specifically, that
the rule should apply to flights operated
at least 24 times in a calendar quarter
and that flights should be deemed
chronically late if they arrive at least 15
minutes late more than 50 percent of the
time. Ms. Hanni goes further and calls
for an even lower threshold of 40
percent. CAPBOR wants the Department
to make certain that carriers cannot
evade the rule by changing the number
of a flight or changing its departure time
by a few minutes. Ms. Hanni adds that
the Department should also address the
problem of chronically cancelled flights
by regulation.
None of the individual commenters
addressed this proposal. Of the other
consumer associations, ACAP concurs
with CAPBOR, as do U.S. PIRG, Public
Citizen, and the National Consumers
League. NBTA alone supports the
proposal as drafted.
Delta, the only carrier that
commented individually on this issue,
takes the position that the Department
should use the standard proposed as a
rebuttable presumption that a flight
violates 49 U.S.C. 41712 rather than as
a rule. In Delta’s view, the Department
must also consider in each case whether
the carrier has intended to deceive the
public or compete unfairly, because
flights may fail to operate on time for an
extended period for many reasons that
are beyond the carrier’s control. For
example, if a flight performs erratically
due to unpredictable delays attributable
to problems in the national air traffic
control system, the carrier cannot solve
the problem by extending the block time
to make the flight operate on time more
consistently: This would make the flight
arrive early when the system functions
properly, which in turn could cause
disruptions and tarmac delays at the
destination airport. Another example
would be a period of harsh and
unexpected weather arriving just when
a carrier thought that it had solved the
problems that had made a flight late.
Delta warns that adopting a rigid
standard for enforcement could result in
carriers’ cancelling flights or arbitrarily
retiming them significantly, thus
creating ‘‘new’’ flights, solely to avoid
enforcement action and even though
they might otherwise have eventually
solved the scheduling problems. Delta
warns that this approach is in turn
likely to cause passengers more
inconvenience than would continuing
to try to address the real issues affecting
a flight’s performance. In cases where
the actual individual delays of a given
flight are relatively small—say 16
minutes, for example—passengers fare
better if the flight is maintained than if
it is cancelled altogether.
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
Delta opposes expanding the
definition of a chronically delayed flight
to include international flights to and
from the United States. It claims that
any carrier’s ability to adjust the timing
of such flights is limited by time zone
issues and consumers’ preference to
arrive at foreign destinations at
particular times. Additionally, foreign
laws and airport authorities may limit a
carrier’s ability to adjust schedules or
address other operational factors that
affect on-time performance.
In Delta’s opinion, adopting the
proposal as a rule would not result in
improvement of on-time performance,
because carriers already deem customer
satisfaction to be critical to their success
and are therefore already doing
whatever they can to meet their
schedules. Rather, Delta suggests, the
government should use its resources to
improve the air traffic control system.
The carrier concludes that in any
enforcement action, if a carrier can
show that it has done all it reasonably
can to resolve the problem but that the
underlying primary cause is outside of
its control, no sanction should be
imposed.
Of the carrier associations that
commented, ATA, with IATA’s
endorsement, agrees with Delta that the
proposed standard should only be a
rebuttable presumption and not a rule,
because in some circumstances a carrier
may have legitimate reasons for not
being able to comply. ATA supports the
proposed definition of a chronically
delayed flight and prefers it to the
standard proposed by the Department’s
Inspector General (IG), i.e., flights
arriving 30 minutes late 40 percent of
the time. ATA opposes expanding the
definition to include international
flights.
RAA does not oppose defining
chronically delayed flights, but it does
oppose treating them as an unfair and
deceptive practice subject to
enforcement action. RAA believes that
the market will punish carriers that fail
to satisfy consumers and that the
Department should rely on market
forces rather than enforcement. If the
Department persists nevertheless, RAA
takes the position that the rule should
apply only to the carrier that sets the
schedules and enters into contracts of
carriage with passengers when that
carrier is not the carrier operating the
flights. In a similar vein, ACAA
contends that any rule on chronically
delayed flights should apply only to the
largest carriers.
ACI–NA states that chronically
delayed flights can harm both airports
and their local communities
economically by causing passengers to
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
lose confidence in an airport’s
operations. A smaller airport can sustain
greater harm, according to ACI–NA,
because even though larger airports may
have more delayed flights, delayed
flights at a smaller airport may
constitute a larger percentage of that
airport’s flights. Also, delays at small
airports whose flights feed a large
carrier’s hub are more disruptive to
passengers, because they cause more
missed connections. Regarding the
proposal, ACI–NA maintains that a
threshold of 45 flight operations per
calendar quarter, or approximately four
flights per week, will improperly
exclude operations at many small
airports and thus fail to protect their
passengers. Instead, ACI–NA proposes a
threshold of 12 flight operations per
calendar quarter, or one flight per week.
ACI–NA also maintains that a latearrival threshold of more than 70
percent is too lenient to carriers and
unfair to consumers, and it proposes a
threshold of 50 percent. Finally, ACI–
NA maintains that any rule should
apply not only to the major and national
carriers that account for at least one
percent of domestic scheduled
passenger revenue but also to the
operations of regional or feeder carriers
that are affiliated with the larger
carriers. ACI–NA reasons that delays
harm passengers just as much regardless
of which certificate holder operates the
aircraft. Furthermore, with regional
carriers now transporting one of every
four domestic passengers, operating half
of daily domestic flights, and providing
the only scheduled service to about 70
percent of U.S. airports, ACI–NA deems
it critical that their operations be
covered by the rule.
Of the travel agency associations,
ASTA supports defining chronically
delayed flights as an unfair and
deceptive practice but suggests that the
proposal can be improved in a number
of ways. First, the threshold should be
set at 50 percent rather than 70 percent,
which will be a stronger incentive for
airlines to adjust their schedules or
operations. Second, rather than
permitting a carrier two calendar
quarters to correct a chronically delayed
flight, correction should be required
within the first calendar quarter
following the one in which the flight
became chronically delayed: ASTA
maintains that three months should
usually suffice, and in cases where a
carrier can show why it should be
granted additional time, the Department
would have the discretion to
accommodate it. Third, ASTA supports
applying this rule to international
scheduled passenger service by both
PO 00000
Frm 00009
Fmt 4701
Sfmt 4702
74593
U.S. and foreign carriers. ITSA did not
address this issue.
Proposed Rule: With some
modification to the details, we have
decided to propose a rule along the lines
set forth in the ANPRM, and we invite
comments from all interested persons.
Specifically, we propose to amend 14
CFR 399.81 to define chronically
delayed flights and to specify that the
Department considers flights that
continue to be chronically delayed for
three consecutive calendar quarters to
be an unfair and deceptive practice and
an unfair method of competition within
the meaning of 49 U.S.C. 41712 and
subject to enforcement action. This
proposal defines a flight as chronically
delayed if it is operated at least 30 times
in a calendar quarter and arrives more
than 15 minutes late more than 70
percent of the time. As far as substitute
flights are concerned, all flights in a
given city-pair market whose scheduled
departure times are within 30 minutes
of the most frequently occurring
scheduled departure time would be
considered to be one single flight for
purposes of assessing chronic delays.
The revised proposal reflects the
Department’s 2008 enforcement policy,
and we tentatively believe that it strikes
the appropriate balance between
consumers’ need to have reliable
information about the real arrival time
of a flight and the carriers’ inability to
control or predict the weather and
certain other factors that can contribute
to delays. In addition, for the reasons set
forth below in support of our decision
not to propose a rule requiring on-time
reporting of international flights, we
have also decided against proposing to
include foreign air transportation—i.e.,
international flights—in the definition
of a chronically delayed flight.
We further invite interested persons
to comment on an alternate definition of
a chronically late flight as one that is
operated at least 30 times in a calendar
quarter and that arrives at least 30
minutes late at least 60 percent of the
time. While this latter approach could
theoretically yield more benefits for
consumers, we are concerned that
adopting this more stringent standard
could lead to a large number of flight
cancellations and possibly even the
elimination of service to some
communities. Also, we invite comment
on whether we should adopt an even
stricter definition favored by the
Department’s Inspector General: A flight
that is cancelled or delayed 30 minutes
or more at least 40 percent of the time.
The Inspector General calculated in
2006 that using this definition would
yield 5,369 chronically delayed flights,
a very high number (Follow-Up Review:
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74594
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
Performance of U.S. Airlines in
Implementing Selected Provisions of the
Airline Customer Service Commitment,
Report Number AV–2007–012, Issued
November 21, 2006, at page 5, footnote
8, and Attachment, page 17). Because
we are concerned that any
consequential increase in enforcement
responsibilities might require the
diversion of resources from other
aviation compliance activities,
commenters should assess both the
benefits that this definition would
engender and the costs that it would
entail. Of course, regardless of which
definition we adopt, we always have the
authority to take enforcement action
against flights that do not meet the
definition but that appear to involve
unrealistic scheduling and thus to
constitute unfair and deceptive
practices and unfair methods of
competition within the meaning of 49
U.S.C. 41712.
For enforcement purposes, we are
considering the option of not treating a
flight that remains chronically delayed
for three consecutive quarters as an
unfair and deceptive practice and an
unfair method of competition if every
prospective passenger using any
available channel of purchase is
informed before buying a seat on that
flight that the flight is chronically
delayed. There is no deception or
unfairness if a consumer who knows
that a flight is chronically delayed
chooses it for travel nonetheless. We
invite comment on this approach.
We are tentatively rejecting as too
draconian the consumers’ contentions
that we should not allow a full six
months for the correction of a
chronically delayed flight, that we
should automatically impose civil
penalties in the calendar quarter when
a flight becomes chronically delayed,
and that we should define chronically
delayed flights more broadly. As we
have stated above, our aim in proposing
rules is to strike a balance between a
passenger’s need to have the best
possible information about the real
arrival time of a flight and the carriers’
inability to control—or foresee—the
weather and various other factors that
can cause delays. As for chronically
cancelled flights, the proposed rule
would treat each flight that is cancelled
within seven days of departure as a
delayed flight for purposes of our
analysis, but we decline at this time to
consider regulating chronically
cancelled flights in other respects. We
are addressing consumers’ concerns that
carriers could evade the rule by
changing a flight’s number or departure
time by providing for the treatment of
substitute flights as the same flight.
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
We are also tentatively rejecting the
carriers’ contention that we should use
the standard we adopt as a rebuttable
presumption and not a rule. Chronic
delays are a serious problem that must
be addressed, and we consider the
standard we are proposing here to be a
reasonable and feasible approach. We
invite carriers to provide evidence to the
contrary in their comments on this
proposal. Furthermore, as the carriers
know, the Department’s enforcement
procedures afford a potential
respondent ample opportunity to show
extenuating or mitigating circumstances
and thus perhaps avoid penalty. For
example, our enforcement procedures
are sufficiently flexible for us to take
account of the contract terms between a
major carrier and its regional code-share
partner in any investigation of the
latter’s delayed flights. As for ACAA’s
contention that any rule should apply
only to the largest carriers, while ACI–
NA’s comments attest to the importance
of addressing unrealistic scheduling by
small and regional carriers, by its terms
the proposed rule would not apply to
any carrier that does not account for at
least one percent of domestic scheduled
passenger revenue. These carriers
already collect and report on-time
performance data. Their operations
account for nearly 90 percent of all
domestic passenger enplanements. In
our view, the substantial cost burden
that compliance with this proposal
would impose on the smaller carriers,
which are not required to collect or
report on-time performance data, would
outweigh any corresponding public
benefits.
4. Delay Data on Carriers’ and Other
Sellers’ Web Sites
The ANPRM: This proposal would
require both carriers that report on-time
performance data to the Department and
online travel agencies to include on
their Web sites, at a point before the
passenger selects a flight for purchase,
the following information on each listed
flight’s performance during the previous
month: The percentage of arrivals that
were on time, the percentage of arrivals
that were more than 30 minutes late,
special highlighting of any flight that
was late more than 50 percent of the
time, and the percentage of
cancellations.
The Comments: CAPBOR and its
members support requiring carriers to
publish delay data on their Web sites for
all flights but they assert that flights
should be defined as ‘‘late’’ if they
arrive more than 15 minutes late, not 30
minutes as proposed. CAPBOR believes
that passengers will use this information
to make better choices and that as a
PO 00000
Frm 00010
Fmt 4701
Sfmt 4702
consequence, carriers with more
delayed flights will have a greater
incentive to correct their problems.
CAPBOR takes the position that carriers
should be required to provide the
information not only on their Web sites
before booking but also upon request to
consumers who book by telephone.
CAPBOR also takes the position that
third-party reservations services should
be required to provide this information
as well and that carriers ‘‘should be
required to provide open interfaces for
internet applications to access [these]
data from their servers so as not to
impose undue costs [on] third parties.’’
CAPBOR favors applying this rule to the
international flights of U.S. carriers and
to all domestic scheduled passenger
service using aircraft with more than 30
passenger seats. Ms. Hanni adds that
special highlighting should be required
for any flight that is late more than 40
percent of the time. In her view,
however, it would not be enough to
require disclosure of the performance
information by telephone only upon
request. Rather, she maintains, we
should require disclosure of information
about both chronically delayed and
chronically cancelled flights whenever a
consumer is booking flights, be it on
line, by telephone, or even in person.
Those individual commenters who
addressed this issue agree that
disclosure of this information should be
required for telephone sales as well as
internet sales. They also agree that the
disclosure requirement should apply to
third-party reservations services.
Of the other consumer associations,
ACAP agrees with CAPBOR, as does
U.S. PIRG. Public Citizen concurs with
U.S. PIRG and CAPBOR; the National
Consumers League concurs with U.S.
PIRG. NBTA supports requiring carriers
to provide on-time performance
information to consumers ‘‘so long as
these requirements are aligned with
performance reports that carriers must
file with DOT.’’
Senators Boxer and Snowe support
this proposal.
As for members of the industry, Delta,
again the only carrier that commented
individually on this issue, agrees that
giving interested consumers information
on historical on-time performance is
good customer service, but the carrier
strongly objects to detailed regulation of
how this information is provided. In
Delta’s view, carriers should be free to
decide what to tell consumers and how.
On its Web site, Delta currently makes
available the percentage of operations
that were on time for any flight for
which it is required to file on-time
performance data with the Department.
Once a consumer has selected dates and
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
routes, the screen for flight availability
and pricing provides access to the
following information via a click on the
flight number: equipment type, flight
duration and distance, and on-time
performance for the previous month. In
Delta’s view, its practice meets
consumers’ reasonable wishes for
information on a flight’s historical
performance, and the other categories of
information that the Department
proposes to require are unnecessary.
Delta also contends that requiring
carriers to change their Web sites to
provide this additional information
would impose substantial costs without
yielding offsetting benefits for
consumers. Unlike on-time performance
data, Delta maintains, the data needed
to deliver the additional information are
not already collected, and Delta’s
existing software would not support
collecting them or displaying and
highlighting the results.
Delta also contends that the
additional information that the proposal
would require is of little relevance to
consumers when purchasing air
transportation. First, it reasons, a flight’s
performance over a month does not
predict its performance today,
tomorrow, or in three months, because
reasons for delays can vary with seasons
and from week to week or day to day
according to weather, special events, or
infrastructure problems (e.g., ATC
system failures, runway or taxiway
closures). Delta states that it is
constantly identifying and analyzing
flights that perform poorly and taking
measures to improve their performance
by adjusting schedules and block times,
crew rotations, maintenance schedules,
and other operational factors. As a
result, Delta states, a flight that performs
poorly in one month rarely performs
poorly the next month, and it is even
less likely to perform poorly several
months in the future. Second, Delta
states that it has monitored customer
calls at the rate of about 5,000 per
month and that between March and
September of 2007 it did not observe
even one request for information on ontime performance.
Delta maintains that the percentages
of its arrivals that are more than 30
minutes late and the percentage of its
cancellations would be ‘‘statistically
insignificant’’ (Delta estimates that just
over ten percent of its flights system
wide arrive more than 30 minutes late
and states that in November of 2007 its
completion rate was 99.3 percent), but
it claims that collecting the underlying
data to comply with the proposal would
‘‘require substantial infrastructure
modifications.’’ Delta also maintains
that about 40 percent of all cancellations
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
result from mechanical problems, which
are not specific to flight, route, or
schedule, and therefore, providing this
information during the booking process
would not alert consumers to
problematic flights.
Delta objects to requiring reservations
agents to disclose on-time performance
at the time of booking without being
asked. It states that this would increase
call times and call wait times and the
costs associated with each. The delays,
it states, would irritate callers who do
not seek this information—i.e., in
Delta’s experience, most callers.
Consumers would not benefit, Delta
contends, because historic performance
is a poor predictor of performance when
the passenger plans to fly.
Of the carrier associations that
commented on this proposal, ATA, with
IATA’s support, favors the disclosure of
delay information on carriers’ Web sites
or via a link to a third-party Web site
only when consumers request this
information. Stating that carriers already
have commercial incentives to provide
information that is of interest to
consumers and that many already post
on-time data on their Web sites, ATA
contends that requiring the disclosure of
data that consumers demand only
occasionally would waste resources by
increasing programming costs and
consuming valuable screen space. Such
a requirement would also waste the time
of those consumers who do not find the
information useful.
Like Delta, ATA strongly opposes
requiring carriers’ reservations agents to
disclose on-time information without
being asked, because the high cost of
compliance would outweigh its
speculative benefit. Furthermore, ATA
maintains, requiring carriers’
reservations agents to provide this
information but not requiring the same
of travel agents would prejudice
competition between the two channels
by imposing the added costs only on the
carriers. ATA estimates the cost of
compliance at $0.50 per call, which
would translate into an additional $25
million per year for a carrier that
receives over 50 million calls at its
reservations center just for agents’ time
and not including training and
programming costs. ATA also maintains
that Computer Reservations Systems’
(CRSs’) displays currently have no space
to show the extra on-time information
covered by the proposal. The costs of
modifying the displays would be high
but the benefits few, ATA argues,
because carriers’ reservation centers
account for only about 20 percent of all
bookings. This requirement would also
waste the time of those passengers who
do not want the additional information.
PO 00000
Frm 00011
Fmt 4701
Sfmt 4702
74595
At the FAA’s valuation of passenger
time at about $30 per hour, the waste
could run to tens of millions of dollars
each year.
ATA also maintains that requiring
‘‘special highlighting’’ of flights would
entail high costs for extensive
reprogramming of internal carrier
software and extensive changes to
carriers’ Web sites but would yield
benefits that are dubious at best. ATA
does not believe that the proposed
disclosures would give consumers better
information or help them make better
choices, because historic performance
data do not predict future performance.
RAA believes that this proposal
would burden the reservation process
and Web sites by giving passengers
information that they may not want and
by cluttering display screens so that
they could not accommodate as many
flights as they do now. RAA agrees with
Delta and ATA that historic
performance information may well have
no predictive value for a consumer’s
flight, given variations in weather, for
example. RAA argues that ‘‘subjecting
passengers to information overload
could only further confuse them,
lengthen the time required for booking
a flight, substantially increase the
workloads of reservation agents and
webmasters and lengthen customer wait
times, all to the detriment of the
passenger.’’ RAA maintains that
passengers who want information on
their flights’ past performance can find
it in the Department’s reports and can
also use this source to compare the
performance of flights in the same citypair offered by competing carriers. It
states that most carriers’ Web sites
already offer performance information
on the previous and current day’s
flights, and it opines that this is the
information that consumers find most
useful as their travel days draw near. In
addition, some historic performance
information is already available from
reservations agents on request. RAA
suggests that carriers could offer those
passengers who want additional
information a link to the Department’s
Web site, a solution it deems superior to
‘‘imposing unwanted information on
travelers who would rather expedite
their bookings.’’ Finally, RAA observes
that regional airlines that operate
services for major carrier code-share
partners and that do not offer their own
reservations and ticketing services
would not be covered by this proposal.
ACI–NA supports the proposal but
did not specifically address it.
Of the travel agency associations,
ASTA opposes this proposal as
unworkable and unhelpful to
consumers. Noting that current
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74596
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
technology could not deliver on-time
data for display by online travel
agencies until the first week of the
month following the deadline for
reporting the data to the Department,
which itself is 15 days after the
applicable reporting month, ASTA
maintains that ‘‘[w]hat happened on a
flight two months ago (on average) is not
particularly instructive for what flights
will do today, especially if the
seasonality factor is considered.’’ ASTA
agrees with Delta and ATA that the
costs of reprogramming to comply with
the proposal would be significant and
that the reprogramming could
complicate the web displays of all
online sellers of air transportation. If the
Department does adopt a rule requiring
disclosure of flights that are late more
than a certain percentage of time, ASTA
believes that the percentage should be
the same as the percentage the
Department uses to define flights that
are chronically delayed. In addition,
ASTA believes that if the Department
uses enforcement aggressively against
chronically late flights, carriers may be
expected to take steps to avoid
enforcement, which in turn would
lower the incidence of late flights and
make the proposed rule superfluous.
ITSA opposes this proposal, taking
the position that the publication of
flight-specific on-time performance data
should be left to the marketplace. In
ITSA’s view, vendors should be allowed
to exercise their business judgment to
determine the extent to which
consumers demand this information and
whether and how to present it. ITSA
contends that consumers who use its
members’ services would not hesitate to
let these vendors know if they wanted
to have the historic performance data
covered by the proposal when they book
flights, and it asserts that so far they
have not done so, not even in surveys
and focus groups conducted by vendors.
ITSA agrees with the other industry
parties who contend that historic flight
data have little if any predictive value.
ITSA points out that the proposal’s
requirements would affect not only
online reservations services, including
those of the carriers, but also the CRSs
on which all vendors rely. If, over
ITSA’s objections, the Department does
propose a rule requiring disclosure of
historic on-time performance, ITSA
seeks clarification of whether all, some,
or none of the rule’s provisions would
apply to third-party vendors as well as
to the carriers. ITSA also raises the issue
of liability for performance data’s
accuracy and asks the Department to
specify that online vendors and CRSs
rely entirely on carriers for these data.
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
Proposed Rule: We have decided to
propose a rule mostly along the lines set
forth in the ANPRM, and we invite
comment from all interested persons.
Specifically, we propose to amend 14
CFR 234.11 to require air carriers that
report on-time performance to publish
the following information on their web
sites for each listed flight regarding its
performance during the latest reported
month: the percentage of arrivals that
were on time (i.e., within 15 minutes of
scheduled arrival time), the percentage
of arrivals that were more than 30
minutes late, with special highlighting if
the flight was late more than 50 percent
of the time, and the percentage of
cancellations. Carriers will be able to
comply with the rule in one of the
following ways: by showing the
percentage of on-time arrivals on the
initial listing of flights and disclosing
the remaining information on a later
page at some stage before the consumer
buys a ticket, or by showing all of the
required information via a hyperlink on
the page with the initial listing of
flights. To ensure that all carriers are
posting information covering the same
month, we are proposing to require that
they load the information for the
previous month into their internal
reservations systems between the 20th
and the 23rd days of the current month.
(This latter requirement would also
apply to § 234.11(a), the existing
requirement that carriers disclose ontime performance information during
reservation calls, ticketing discussions
or transactions, or flight inquiries.) We
invite comment from carriers on
whether they would find it more
convenient to load the information
overnight on the third Saturday of the
month than between the 20th and 23rd
days as proposed.
In adopting this approach, we are
tentatively rejecting consumers’ request
for disclosure of the percentage of
arrivals that were more than 15 minutes
late and special highlighting of flights
that are late more than 40 percent of the
time as excessive and unnecessary. We
also tentatively reject the contention
that the same disclosures should be
required during telephone bookings.
Section 234.11 already requires
disclosure of on-time performance when
requested during live discussions,
transactions, or inquiries. We tentatively
agree with the carriers that the costs of
providing this and other information to
all callers whether requested or not
would be unduly burdensome and of
dubious benefit, especially given that
the rule will give consumers access to
this information on the carriers’ web
sites. We are tentatively rejecting the
PO 00000
Frm 00012
Fmt 4701
Sfmt 4702
arguments that flight performance data
are irrelevant to consumers: the
consumers’ comments show otherwise.
We invite those who file comments in
opposition to this proposal to support
their arguments with data on the costs
of modifying their web sites to comply
with the proposed disclosure
requirements.
We have tentatively decided not to
propose requiring on-line travel
agencies to post the same information.
For one thing, the costs of doing so
would probably far outweigh the
benefits for at least several years. Our
preliminary economic analysis indicates
that the costs to on-line travel agencies
of complying with this proposed rule
would run to $53.4 million in the first
year and that benefits to passengers in
this first year would amount to only
$3.4 million. (Initial Regulatory Impact
Analysis of Proposed Rulemaking on
Enhanced Airline Passenger Protections
at 56.) Applying the requirement only to
carriers would cost the carriers $1.9
million in the first year while conferring
benefits of $2.8 million on passengers.
(Id. at 53.)
We would also like commenters to
address one additional question: should
we require covered carriers to provide
the required information for domestic
code-share flights, and if so, should this
requirement apply to all domestic codeshare flights or only to those operated
by carriers that report on-time
performance?
5. Complaint Data on Carriers’ Web
Sites
The ANPRM: This proposal would
require certificated and commuter
carriers that operate domestic scheduled
passenger service using any aircraft with
more than 30 passenger seats to publish
complaint data on their Web sites. Each
carrier would have to disclose the
number of consumer complaints it has
received within a defined time frame
concerning subjects such as tarmac
delays, missed connections, and the
failure to provide amenities to
passengers affected by a flight that is
delayed or canceled.
The Comments: CAPBOR and its
members support the proposal and favor
requiring carriers to publish complaint
data on the following categories:
involuntary bumping, baggage issues,
frequent flyer miles, unaccompanied
minors, delays, tarmac strandings, and
disabilities. In Ms. Hanni’s opinion, the
complaints submitted only to the
Department give an incomplete picture
of the state of the industry.
Of the individual commenters, one
does not think that consumers would
use this information to make booking
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
decisions, because they base their
decisions on price, availability, and
schedule. This commenter also does not
think that the proposal would lessen
flight delays. Another individual agrees
in general with the proposal but is
concerned that the same information
should be available to consumers who
do not use the Internet.
Of the other consumer associations,
ACAP concurs with CAPBOR, as do US
PIRG, Public Citizen, and the National
Consumers League. NBTA does not
support this proposal. It argues that
despite the desirability of transparency
in general, the benefits to consumers of
carriers’ highlighting their complaints
would be dubious. NBTA also cautions
that many complaints are not
sufficiently clear-cut to fall into simple
categories and that the proposal makes
no distinction between problems under
carriers’ control and problems resulting
from uncontrollable factors such as the
weather.
As for members of the industry, Delta,
again the sole carrier to comment
individually, strongly opposes this
proposal. First, it maintains that
carriers’ communications on their Web
sites are protected by the First
Amendment and that there are
constitutional restrictions on the
government’s ability to force carriers to
communicate content on their Web sites
with which they disagree and which
does not show themselves in a positive
light. Second, it asserts that consumers
who would like to know other
consumers’ views of any carrier’s
customer service record can consult
other sources, such as the Department’s
complaint data and a variety of thirdparty Web sites. Third, it contends, the
proposal would be impossible to
enforce, because carriers would
inevitably adopt disparate standards.
Fourth, it claims that the information
would not be useful to consumers,
because the carriers would not be able
to indicate whether complaints were
reasonable, how serious they were, or
how they were handled.
Of the carrier associations that
commented on this proposal, NACA,
with ACAA’s endorsement, opposes it.
Like Delta, NACA believes that the
subjective coding of complaint letters
would render the cumulative numbers
that would be published meaningless
and devoid of context. Also like Delta,
NACA contends that the proposal
represents overreaching by the
government. NACA states that the
government does not force private
businesses in any other industry to
disclose their customer service results.
NACA predicts, moreover, that the costs
of collecting and disseminating the
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
complaint data would be particularly
onerous for the smaller carriers that do
not file delay and baggage data with the
Department and are not included in the
Department’s Air Travel Consumer
Report.
ATA, with IATA’s support, also
opposes this proposal, because
complaint data are already available
from the Department and other online
sources, because the information would
not be useful to consumers, and because
the Department provides no support for
its implicit assumption that complaint
data reflect a carrier’s actual
performance. ATA also maintains that
compliance with the proposal would be
costly, and, like NACA, it asserts that in
no other industry are firms required to
publish complaint data. In addition,
ATA agrees with Delta that the proposal
may well run afoul of the First
Amendment.
RAA opposes this proposal as well,
suggesting as an alternative that the
Department encourage carriers to inform
consumers on their Web sites of, and
perhaps provide links to, the
Department’s Aviation Consumer
Protection Division’s Web site. This
approach, it states, would give
consumers standardized information
that would be more helpful to them and
would avoid burdening consumers with
additional screen clutter and carriers
with data storage and retrieval
requirements.
ACI–NA supports this proposal but
did not specifically address it.
Of the travel agency associations,
ASTA opposes this proposal for the
same reasons that it opposes requiring
delay data on sellers’ Web sites, and it
questions the value of complaint data to
consumers. ITSA opposes requiring
online vendors to publish complaint
data.
No Proposal: We have decided not to
propose a rule requiring the publication
of complaint data. Both the comments
and our own further consideration have
persuaded us that these data would be
of little or no value to consumers.
Specifically, consumers have access to a
tabulation of complaints filed with the
Department in the Air Travel Consumer
Report, available on our Aviation
Consumer Protection Division’s Web
site (https://airconsumer.ost.dot.gov/). In
our experience with disability and
discrimination complaints, consumers’
complaints to the Department provide a
reliable indication both of the types of
complaints that individual carriers
receive and, in relative terms, of which
carriers receive the most complaints.
Also, although carriers may receive 20
or 30 times as many complaints as the
Department does, the Department’s
PO 00000
Frm 00013
Fmt 4701
Sfmt 4702
74597
consumer complaint data are not subject
to the disparate and subjective counting
and coding that would inevitably occur
under the original proposal.
6. International Flights’ On-Time
Performance
The ANPRM: This proposal would
require U.S. carriers that report on-time
performance to the Department and the
largest foreign carriers to report on-time
performance for international flights to
and from the United States.
The Comments: CAPBOR and its
members support a requirement that ontime performance be reported for all
domestic and international scheduled
passenger service using aircraft with
more than 30 passenger seats. ACAP,
U.S. PIRG, Public Citizen, and the
National Consumers League concur.
NBTA supports requiring U.S. and
foreign carriers to report on-time
performance for international flights as
‘‘a reasonable mechanism to bring
greater transparency to a growing
market of [increasing] significance to
NBTA and its international partners.’’ It
believes that the requirement should be
comparable to that for domestic flights
and that its implementation should be
cost effective.
As for the industry commenters, of
the carriers, Jet Airways generally
supports initiatives to protect
passengers without imposing
unreasonable or unbalanced burdens on
carriers, and it deems this proposal to be
reasonable. Jet Airways suggests that to
determine ‘‘the largest foreign carriers’’
the Department should consider the
number of weekly flights a foreign
carrier operates to U.S. airports and the
concentration of international flights a
single foreign carrier operates at each
international gateway: for example, any
foreign carrier that operates at least 70
flights a week to and from the United
States could be included, as could any
foreign carrier that accounts for at least
10 percent of scheduled international
departures at a U.S. gateway.
Delta opposes the proposal. It believes
on-time performance information to be
of little use to consumers as a predictor
of any given flight’s performance on any
given day, and it reports that consumers
almost never request it. Delta doubts
that on-time performance information
for international flights will be useful to
the Department for enforcement
purposes, particularly flights to the
United States, because factors that affect
performance are often beyond a carrier’s
control, and because carriers often have
little leeway to adjust schedules due to
local airport restrictions, time zones,
and other features of international
aviation. In addition, Delta contends
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74598
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
that it would be unfair to impose the
proposed requirement on U.S. carriers
without holding foreign carriers to the
same standards, which in turn would
pose a risk that foreign authorities
would retaliate by imposing
burdensome requirements on U.S.
carriers operating abroad, thus raising
the costs of international flights.
China Eastern also opposes the
proposal. It maintains that any benefits
to consumers would be far outweighed
by the costs to foreign carriers of
devising the means to comply,
especially those carriers that do not
operate multiple daily flights to the
United States. China Eastern also states
that the information at issue is already
available to consumers on Web sites
such as https://www.flightstats.com.
China Eastern cautions that if the
Department adopts this proposal, other
countries could impose similar
requirements, resulting in ‘‘a global
patchwork of reporting requirements,
imposing significant costs on foreign
carriers and their customers.’’ If the
Department does adopt the proposal,
China Eastern endorses Jet Airways’
approach to defining ‘‘the largest foreign
carriers.’’ China Eastern adds that if data
are collected, the reasons for delays,
such as the holding of flights for
connecting passengers, weather, and
airport congestion and traffic, should be
clearly stated in conjunction with the
delay statistics.
Virgin Atlantic opposes the proposal,
stating that it is not required to supply
on-time performance data to the UK or
the EU and that producing such data
and providing them to the Department
would be a significant regulatory burden
with questionable benefits for
consumers. Virgin Atlantic contends
that many factors affecting on-time
performance are beyond any carrier’s
control. Virgin Atlantic also expresses
concern over how to determine which
foreign carriers are ‘‘large,’’ given that
Virgin itself, like most foreign carriers,
serves most of its international
destinations only once or twice per day.
AAPA, a trade association of 17 major
international carriers, states that it
needs clarification from the Department
on how it would use the on-time
performance data, the level of detail the
rule would require, and who would
have access to the data before it can
assess the costs involved with
complying with this proposal. As for
how to define ‘‘large foreign airline,’’
AAPA proposes that the definition be
based on flight frequency to and from
the U.S. rather than on carrier revenues.
IATA opposes the proposal. It states
that sufficient on-time performance data
are available through Web sites such as
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
https://www.flightstats.com to give
consumers all the information they
might want or need. It maintains that
any benefits the proposal might yield
would be outweighed by its costs. In
IATA’s experience, consumers of
international air transportation are
swayed more by price and route
convenience than by on-time
performance. IATA’s foreign-carrier
members have not been required to
report on-time performance data and
would therefore incur significant costs
in setting up the infrastructure to
comply with the proposal. IATA
contends that these costs would be
especially onerous for the many foreign
carriers that serve the United States
infrequently. Like other industry
commenters, IATA expresses concern
that the proposal could prompt other
governments to establish their own
multifarious on-time performance
reporting requirements, with each such
requirement imposing another new set
of costs, and with all of them together
causing additional confusion for
consumers. IATA notes that carriers
sometimes delay long-haul international
flights to accommodate delayed
connecting passengers and cautions that
the proposal could discourage this
practice if carriers had to consider the
consequences of poorer on-time
performance results. This in turn would
harm consumers, because frequently a
carrier will only operate one such flight
per day, so those passengers who
missed it would have to stay overnight
at their departure gateway.
ATA opposes the proposal for some of
the same reasons as IATA. First, carriers
frequently hold international flights for
passengers who are delayed on inbound
connecting flights, because an
international flight may be a carrier’s
only operation to the foreign destination
for that day or even for the week. These
delays avoid stranding passengers, and
ATA contends that carriers should not
be penalized by having to report them.
Second, ATA states that wind speeds
tend to be stronger over the oceans,
causing significant delays when carriers
have to fly against prevailing winds.
Third, ATA maintains that while equity
and fairness would require the
Department to impose the same
requirements on foreign carriers as on
U.S. carriers, the proposal would
nonetheless place U.S. carriers at a
competitive disadvantage, since they
report all of their domestic flights as
well as international flights, while most
foreign airlines would report only a few
flights per day, and ‘‘[t]his severe
disparity in the data would result in
skewed and misleading information to
PO 00000
Frm 00014
Fmt 4701
Sfmt 4702
consumers.’’ Fourth, the proposal could
subject U.S. carriers to new foreign
regulations country by country. Fifth,
the burden the proposal would impose
on many foreign carriers would
outweigh any theoretical benefit to
consumers. ATA asserts that if the
Department adopts the proposal over its
objections, it should take care to ensure
that domestic on-time performance data
and international on-time performance
data are kept separate in any source
seen by consumers.
RAA opposes the proposal, fearing
new reporting requirements on the part
of foreign governments and the
associated cost burdens. If the
Department does adopt the proposal,
however, RAA favors requiring reports
only of the largest airlines in the largest
markets.
ACI–NA supports the proposal but
did not specifically address it.
Of the travel agency associations,
ITSA takes the position that any
reporting requirement for international
flights ‘‘should be carefully harmonized
with the home nations of any such
carriers, or through any appropriate
multinational body, in advance, in order
to avoid [responsive] additional and
potentially inconsistent requirements on
U.S. carriers’’ which ‘‘could lead to
additional and possibly inconsistent
publishing requirements for [online
vendors, CRSs,] and others from
multiple nations.’’ ASTA did not
address this issue.
No proposal: We have decided for
several reasons not to propose a rule
requiring the reporting of on-time
performance for international flights.
First, as some carriers report, this
information is already available on the
internet. Second, many international
flights involve slot-controlled airports,
which means that the carriers operating
them already have an incentive to meet
their schedules. Third, we do not have
sufficient evidence of a problem to
justify the costs of reporting on-time
performance of international flights, and
on the many international routes that
are only served by one carrier, access to
on-time performance data would not
affect consumers’ choices. Fourth, as
some carriers contend, a reporting
requirement could make carriers less
inclined to hold flights for incoming
connections, which would create
hardships for passengers in city-pairs
served once a day or less. Fifth, the
operating environment for international
flights is much less homogeneous than
that for domestic flights: For example, a
variety of transoceanic weather patterns
and long stage lengths can affect
operating times. Finally, a reporting
requirement, particularly one based on
E:\FR\FM\08DEP2.SGM
08DEP2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
rwilkins on PROD1PC63 with PROPOSALS2
carrier size, could raise issues regarding
carriers’ ‘‘fair and equal opportunity to
compete’’ if the requirement
differentiated between U.S. and foreign
carriers or among foreign carriers.
7. Carriers’ Adherence to Customer
Service Plans
The ANPRM: This proposal would
require certificated and commuter
carriers that operate domestic scheduled
passenger service using any aircraft with
more than 30 passenger seats to audit
their own adherence to their customer
service plans. We stated that in
conjunction with this proposal we are
considering requiring any covered
carrier that does not already have a
customer service plan in place to adopt
one and, and we called for comments on
what provisions should be mandatory in
such plans.
The Comments: CAPBOR and its
members support the proposal and take
the position that carriers should be
required to audit their customer service
plans every three years and submit the
results of the audits to the Department
for approval.
Of the two individuals who
commented on this issue, one supports
the proposal and believes that carriers
should all be required to have customer
service plans and that audits should be
standardized. The other also supports
the proposal but believes that the
Department should review a percentage
of the audits every year.
Of the other consumer associations,
ACAP endorses CAPBOR’s comments
but adds its view that customer service
plans are at present ‘‘largely illusory
exercises in public relations rather than
genuine, enforceable, and measurable
standards for customer service’’ and
concludes that therefore self-auditing of
these plans would be meaningless.
ACAP maintains that any auditors
should be independent, that they should
use the standards required for financial
audits, and that the audits themselves
should be ‘‘reviewed and audited by
[the Department] on a statistically
significant sample basis to determine
their effectiveness and validity.’’ US
PIRG concurs with CAPBOR; Public
Citizen concurs with US PIRG and
CAPBOR, and the National Consumers
League concurs with US PIRG.
NBTA doubts that self-audits of
customer service plans would make
these plans credible, so it favors giving
the Department’s IG the resources to
conduct audits of carriers’ customer
service, whether or not they have
adopted specific plans, and to make the
results public. NBTA suggests that these
audits be conducted every three years or
more and ‘‘at similar times in the year
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
to provide accurate comparative
information.’’
As for members of the industry, Delta,
again the only carrier to comment
individually, opposes the proposal as
unnecessary. It contends that
compliance with public customer
service plans represents good business,
particularly given the highly
competitive state of the aviation
marketplace at present. It contends that
conducting a single, unified audit of
compliance may not make sense, and it
states that it has audit processes and
controls in place within each of the
business units involved in meeting its
own service commitments. Rather than
performing one comprehensive audit of
all twelve points of its plan, Delta runs
continuous quality assurance and
performance management programs and
has done so for many years. The carrier
adapts these programs as appropriate to
achieve its customer service goals. Delta
therefore believes that a unified audit
would be redundant and unnecessary.
Delta also contends that aside from
compliance with customer service plans
being good business, a carrier’s failure
to comply with its plan is subject to
enforcement by the Department. Audits
are thus not necessary to give carriers a
strong incentive to comply.
Of the carrier associations that
addressed this issue, NACA, with
ACAA’s endorsement, opposes
independent auditing as an unnecessary
added cost. ATA, with IATA’s support,
objects to external auditing but not to
self-auditing. Also, ATA believes that
the Department should require all
carriers to adopt customer service plans,
but it opposes a requirement that these
plans be incorporated in carriers’
contracts of carriage on the same
grounds as those on which it opposes
requiring incorporation in the contracts
of carriage of contingency plans for
lengthy tarmac delays.
RAA is opposed to requiring all
carriers operating any aircraft with more
than 30 seats to adopt customer service
plans reviewed by the Department and
to audit their own compliance with
these plans. The audits, it maintains,
would impose significant expenses on
the smaller carriers that are least able to
afford them. RAA contends that many of
the commitments in existing customer
service plans would be inappropriate if
applied to carriers that neither market
nor sell air transportation directly to
passengers and that do not enter into
contracts of carriage with them.
Moreover, it states that the major
carriers that belong to ATA have already
undertaken in their ‘‘Customers First 12Point Customer Service Commitment’’
PO 00000
Frm 00015
Fmt 4701
Sfmt 4702
74599
to ensure good customer service by their
code share partners.
ACI–NA supports the proposal but
did not specifically address it.
Of the travel agency associations,
ASTA asserts that carriers have a history
of not living up to their customer
service commitments and that therefore
some form of auditing should be
mandatory. It maintains, however, that
auditing assumes specific standards by
which performance can be empirically
measured and tested, and ASTA does
not see clearly how this could work in
the context of customer service
commitments. ASTA does not think that
rulemaking is the appropriate means for
devising auditing standards. ITSA did
not address this issue.
Proposed Rule: We have decided to
propose a rule along the lines set forth
in the ANPRM but with one significant
addition, and again we invite comment
from all interested persons. Specifically,
our proposed new rule, 14 CFR part 259,
would require every U.S. air carrier that
accounts for at least one percent of
domestic scheduled passenger revenue
to adopt a customer service plan for its
scheduled service and any public
charter flights that it sells directly to the
public and to adhere to this plan’s
terms, but unlike the proposal in the
ANPRM, this proposed rule would
require carriers to incorporate their
customer service plans in their contracts
of carriage. This incorporation would
enable passengers to sue for breach of
contract in the event that a carrier failed
to adhere to its plan. We are proposing
that this rule include public charter
flights because the operating carrier is
the party responsible for ensuring that
charter passengers receive necessary
and promised services. The rule would
require each carrier to audit its own
adherence to its plan annually and to
make the results of its audits available
for the Department’s review for two
years. At a minimum, each plan would
have to address the same subjects as
ATA’s Customers First Customer
Service Commitment (https://
www.airlines.org/customerservice/
passengers/Customers_First.htm):
Offering the lowest fare available,
notifying consumers of known delays,
cancellations, and diversions, delivering
baggage on time, allowing reservations
to be held or cancelled, providing
prompt ticket refunds, properly
accommodating disabled and specialneeds passengers, meeting customers’
essential needs during long on-aircraft
delays, handling ‘‘bumped’’ passengers
in cases of oversales with fairness and
consistency, disclosing travel itinerary,
cancellation policies, frequent flyer
rules, and aircraft configuration,
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
74600
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
ensuring good customer service from
code-share partners, and improving
response to customer complaints. The
provision on meeting customers’
essential needs during long on-aircraft
delays would be required at least to
refer to the carrier’s contingency plan
for lengthy tarmac delays. Failure to do
any of the above would be considered
an unfair and deceptive practice within
the meaning of 49 U.S.C. 41712 and
subject to enforcement action.
In adopting this approach, we are
tentatively rejecting consumers’
arguments that the Department should
set standards for the audits, review all
audits, or even have them done by our
IG. The comments do not persuade us
that we are more qualified than the
carriers to carry out audits. We are also
tentatively rejecting carriers’ arguments
against requiring audits. We are
concerned that some carriers may not be
living up to their customer service
commitments. By requiring the relevant
carriers to adopt plans, incorporate
them in their contracts of carriage, audit
their own compliance, and make the
results of their audits available for us to
review, we intend to afford consumers
better protection than they have
experienced up to now. The plans
would be enforceable not only by the
Department under 49 U.S.C. 41712 but
also by individual consumers or classes
of consumers under state contract law.
The auditing requirement should bring
further pressure to bear on carriers to
live up to their commitments. As in the
case of the contingency plans for
lengthy tarmac delays, we invite
interested persons to comment on the
implications of our creating a private
right of action here, particularly
potential benefits to passengers,
potential negative consequences, and
the costs to carriers. Would requiring
incorporation lead to carriers’
weakening their existing plans? We also
invite those carriers that oppose selfauditing as unduly burdensome to
provide evidence of the costs that they
anticipate. We further invite comment
on whether we should also require
carriers to describe in their customer
service plans the services they provide
to mitigate passengers’ inconvenience
resulting from flight cancellations and
missed connections and to specify
whether they provide these services in
all circumstances or only when the
cancellations and missed connections
have been within their control.
8. Retroactive Applicability of
Amendments to Contracts of Carriage
Although we are not proposing
specific regulatory language on
amendments to contracts of carriage
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
here, we are considering adopting a rule
to prohibit carriers from retroactively
applying any material amendment to
their contracts of carriage with
significant negative implications for
consumers to people who have already
bought tickets. We would like
commenters to address the implications
of a carrier’s being held to different
`
contract terms vis-a-vis different
passengers on the same flight if some
bought their tickets before the contract
of carriage was amended and some
afterwards.
9. Effective Date
We propose that any final rules that
we adopt take effect 180 days after its
publication in the Federal Register. We
intend to afford carriers sufficient time
to adopt their plans, modify their
computer programs, and take other
necessary steps to be able to comply
with the new requirements before we
begin enforcing them. We invite
comments on whether 180 days is the
appropriate interval for completing
these changes.
Regulatory Notices
A. Executive Order 12866 (Regulatory
Planning and Review) and DOT
Regulatory Policies and Procedures
This action has been determined to be
significant under Executive Order 12866
and the Department of Transportation’s
Regulatory Policies and Procedures. It
has been reviewed by the Office of
Management and Budget under that
Order. A preliminary discussion of the
proposed solutions to enhance airline
passenger protections without creating
undue burdens for the carriers is
presented above and in the
accompanying Regulatory Evaluation.
On the cost side, we recognize that
many of the measures suggested in this
NPRM would impose costs for both
implementation and operation on the
entities that its proposed requirements
would cover. The benefits we seek to
achieve entail relieving consumers of
the burdens they now face due to
lengthy ground delays, chronically
delayed flights, and other problems
discussed in the NPRM. The benefits
would be achieved by affording
consumers significantly more
information than they have now about
delayed and cancelled flights and about
how carriers will respond to their needs
in the event of lengthy ground delays.
Making this information accessible
should not only alleviate consumers’
difficulties during long delays but also
enable them to make better-informed
choices when booking flights. The
Regulatory Evaluation has concluded
PO 00000
Frm 00016
Fmt 4701
Sfmt 4702
that the benefits of the proposal appear
to exceed its costs. A copy of the
Regulatory Evaluation has been placed
in the docket.
B. Executive Order 13132 (Federalism)
This Notice of Proposed Rulemaking
has been analyzed in accordance with
the principles and criteria contained in
Executive Order 13132 (‘‘Federalism’’).
This notice does not propose any
regulation that has substantial direct
effects on the States, the relationship
between the national government and
the States, or the distribution of power
and responsibilities among the various
levels of government. It does not
propose any regulation that imposes
substantial direct compliance costs on
State and local governments. It does not
propose any regulation that preempts
state law, because states are already
preempted from regulating in this area
under the Airline Deregulation Act, 49
U.S.C. 41713. Therefore, the
consultation and funding requirements
of Executive Order 13132 do not apply.
C. Executive Order 13084
This notice has been analyzed in
accordance with the principles and
criteria contained in Executive Order
13084 (‘‘Consultation and Coordination
with Indian Tribal Governments’’).
Because none of the options on which
we are seeking comment would
significantly or uniquely affect the
communities of the Indian tribal
governments or impose substantial
direct compliance costs on them, the
funding and consultation requirements
of Executive Order 13084 do not apply.
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires an agency to
review regulations to assess their impact
on small entities unless the agency
determines that a rule is not expected to
have a significant economic impact on
a substantial number of small entities.
The regulatory initiatives discussed in
this NPRM would have some impact on
some small entities, as is discussed in
the Regulatory Evaluation, but I certify
that it would not have a significant
economic impact on a substantial
number of small entities. We invite
comment to facilitate our assessment of
the potential impact of these initiatives
on small entities.
E. Paperwork Reduction Act
This NPRM proposes three new
collections of information that would
require approval by the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act of 1995
(Pub. L. 104–13, 49 U.S.C. 3501 et seq.)
E:\FR\FM\08DEP2.SGM
08DEP2
rwilkins on PROD1PC63 with PROPOSALS2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
Under the Paperwork Reduction Act,
before an agency submits a proposed
collection of information to OMB for
approval, it must publish a document in
the Federal Register providing notice of
and a 60-day comment period on, and
otherwise consult with members of the
public and affected agencies concerning,
each proposed collection of information.
This NPRM proposes three new
collections of information. The first is a
requirement that certificated and
commuter air carriers that operate
domestic scheduled passenger service
using any aircraft with more than 30
passenger seats retain for two years the
following information about any ground
delay that either triggers their
contingency plans for lengthy tarmac
delays or lasts at least four hours: the
length of the delay, the cause of the
delay, and the actions taken to minimize
hardships for passengers. The
Department plans to use the information
to investigate instances of long delays
on the ground and to identify any trends
and patterns that may develop. The
second is a requirement that each air
carrier that accounts for at least one
percent of scheduled domestic
passenger revenue audit its own
adherence to its Customer Service Plan
annually and retain the results for two
years. The Department plans to review
the audits to monitor carriers’
compliance with their plans and take
enforcement action when appropriate.
The third is a requirement that each air
carrier that accounts for at least one
percent of scheduled domestic
passenger revenue and maintains a web
site display information on each listed
flight’s on-time performance for the
previous month. This information will
help consumers to select their flights.
For each of these information
collections, the title, a description of the
respondents, and an estimate of the
annual recordkeeping and periodic
reporting burden are set forth below:
1. Requirement to retain for two years
information about any ground delay
that triggers the respondent’s
contingency plan for lengthy tarmac
delays or lasts at least four hours.
Respondents: Certificated and
commuter air carriers that operate
domestic scheduled passenger service
using any aircraft with more than 30
passenger seats.
Estimated Annual Burden on
Respondents: 0 to 9 hours and 50
minutes (570 minutes) per year for each
respondent. The estimate was calculated
by multiplying the estimated time to
retain information about one ground
delay (15 minutes) by the total number
of ground delay incidents lasting at least
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
four hours per respondent (0 to 38
incidents).
Estimated Total Annual Burden: A
maximum of 73 hours and 35 minutes
(4,401 minutes) for all respondents. The
estimate was calculated by multiplying
the estimated time to retain information
about one ground delay (15 minutes) by
the total number of ground delay
incidents lasting at least four hours in
calendar year 2007 for the reporting
carriers (276) and adding the product of
the estimated time to retain information
about one ground delay (15 minutes)
multiplied by 6.3 percent of the total
number of ground delay incidents
lasting at least four hours in calendar
year 2007 for the reporting carriers
(17.4). (The reporting carriers accounted
for 93.7 percent of domestic scheduled
passenger service, so we have assumed
that nearly all of the remaining 6.3
percent was provided by other
certificated and commuter carriers using
aircraft with more than 30 passenger
seats.)
Frequency: 0 to 38 ground delay
information sets to retain per year for
each respondent. (N.b. Some air carriers
may not experience any ground delay
incident of at least four hours in a given
year, while some larger air carriers
could experience as many as 38 in a
given year according to data on ground
delays in calendar year 2007.)
2. Requirement that each covered
carrier retain for two years the results of
its annual self-audit of its compliance
with its Customer Service Plan.
Respondents: Every U.S. air carrier
that accounts for at least one percent of
scheduled domestic passenger revenue
(18 carriers).
Estimated Annual Burden on
Respondents: 15 minutes per year for
each respondent. The estimate was
calculated by multiplying the estimated
time to retain a copy of the carrier’s selfaudit of its compliance with its
Customer Service Plan by the number of
audits per carrier in a given year (1).
Estimated Total Annual Burden: A
maximum of 4 hours and 30 minutes
(270 minutes) for all respondents. The
estimate was calculated by multiplying
the time in a given year for each carrier
to retain a copy of its self-audit of its
compliance with its Customer Service
Plan (15 minutes) by the total number
of covered carriers (18).
Frequency: One information set to
retain per year for each respondent.
3. Requirement that each covered
carrier display on its Web site, at a point
before the consumer selects a flight for
purchase, the following information for
each listed flight regarding its on-time
performance during the last reported
month: the percentage of arrivals that
PO 00000
Frm 00017
Fmt 4701
Sfmt 4702
74601
were on time (with special highlighting
if the flight was late more than 50
percent of the time), the percentage of
arrivals that were more than 30 minutes
late, and the percentage of flight
cancellations.
Respondents: Every U.S. carrier that
accounts for at least one percent of
scheduled passenger revenue, maintains
a Web site, and is not already displaying
the required information (15 carriers).
Estimated Annual Burden on
Respondents: 623 hours (37,380
minutes) in the first year and no more
than 12 hours (720 minutes) in
subsequent years for each respondent.
The estimate for the first year was
calculated by adding the estimated
number of hours per respondent for
developing its Web site for data posting
(611 hours [36,660 minutes], the
quotient of a one-time programming cost
of $20,000 divided by $32.73, the
median hourly wage for computer
programmers) to the estimated number
of hours for management of data links
(12 hours [720 minutes], estimated at
one hour per month).
Estimated total annual burden: 9,345
hours (560,700 minutes) in the first year
and no more than 180 hours (10,800
minutes) in subsequent years for all
respondents. The estimate for the first
year was calculated by multiplying the
number of hours per respondent for
developing its Web site for data posting
(611 hours) by the number of covered
carriers (15) and adding the product of
the number of hours per year for
management of data links (12) and the
number of covered carriers (15). The
estimate for subsequent years was
calculated by multiplying the number of
hours per year for management of data
links (12) by the number of covered
carriers (12).
Frequency: Development of Web site
for data posting: 1 time for each
respondent. Updating information for
each flight listed on Web site: 12 times
per year (1 time per month) for each
respondent.
The Department invites interested
persons to submit comments on any
aspect of each of these two information
collections, including the following: (1)
The necessity and utility of the
information collection, (2) the accuracy
of the estimate of the burden, (3) ways
to enhance the quality, utility, and
clarity of the information to be
collected, and (4) ways to minimize the
burden of collection without reducing
the quality of the collected information.
Comments submitted in response to this
notice will be summarized or included,
or both, in the request for OMB approval
of these information collections.
E:\FR\FM\08DEP2.SGM
08DEP2
74602
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
F. Unfunded Mandates Reform Act
The Department has determined that
the requirements of Title II of the
Unfunded Mandates Reform Act of 1995
do not apply to this notice.
List of Subjects:
14 CFR Parts 234 and 259
Air carriers, Consumer protection,
Reporting and recordkeeping
requirements.
PART 259—ENHANCED
PROTECTIONS FOR AIRLINE
PASSENGERS
14 CFR Part 399
Administrative practice and
procedure, Air carriers, Air rates and
fares, Air taxis, Consumer protection,
Small business.
For the reasons set forth in the
preamble, the Department proposes to
amend title 14, chapter II, subchapters
A and F as follows:
PART 234—[AMENDED]
1. The authority citation for part 234
continues to read as follows:
Authority: 49 U.S.C. 329 and chapters 401
and 417.
2. Section 234.11 is revised to read as
follows:
rwilkins on PROD1PC63 with PROPOSALS2
§ 234.11
(a) During the course of reservations
or ticketing discussions or transactions,
or inquiries about flights, between a
carrier’s employees and the public, the
carrier shall disclose upon reasonable
request the on-time performance code
for any flight that has been assigned a
code pursuant to this part.
(b) For each flight for which schedule
information is available on its Web site,
a reporting carrier shall display the
following information regarding the
flight’s performance during the most
recent calendar month for which the
carrier has reported on-time
performance data to the Department: the
percentage of arrivals that were on
time—i.e., within 15 minutes of
scheduled arrival time (including
special highlighting if the flight was late
more than 50 percent of the time), the
percentage of arrivals that were more
than 30 minutes late, and the percentage
of flight cancellations. The information
may be provided in either of the
following ways:
(1) By showing the percentage of ontime arrivals on the initial listing of
flights and disclosing the remaining
information on a later page at some
stage before the consumer buys a ticket,
or
(2) By showing all of the required
information via a hyperlink on the page
with the initial listing of flights.
16:39 Dec 05, 2008
Jkt 217001
Sec.
259.1 Purpose.
259.2 Applicability.
259.3 Definitions.
259.4 Contingency plan for lengthy tarmac
delays.
259.5 Customer service plan.
295.6 Contract of carriage.
259.7 Response to consumer problems.
Authority: 49 U.S.C. 40101(a)(4),
40101(a)(9), 40113(a), 41702, and 41712.
§ 259.1
Purpose.
The purpose of this part is to mitigate
hardships for airline passengers during
lengthy tarmac delays and otherwise to
bolster air carriers’ accountability to
consumers.
§ 259.2
Disclosure to consumers.
VerDate Aug<31>2005
(c) Each carrier shall load the
information whose disclosure is
required under paragraphs (a) and (b) of
this section into its internal reservation
system between the 20th and 23rd days
of the month after the month for which
the information is being provided.
3. A new part 259 is added to read as
follows:
Applicability.
This rule applies to all certificated
and commuter air carriers that operate
domestic scheduled passenger service or
public charter service using any aircraft
with a design capacity of more than 30
passenger seats, with the following
exceptions:
(a) Section 259.5 only applies to U.S.
air carriers that account for at least one
percent of domestic scheduled
passenger revenue, and
(b) Section 295.7 does not apply to
charter service.
§ 259.3.
Definitions.
(a) Certificated air carrier means a
U.S. direct air carrier that holds a
certificate issued under 49 U.S.C. 41102
to operate passenger service and/or
cargo and mail service or an exemption
from 49 U.S.C. 41102.
(b) Commuter air carrier means an air
carrier as established by 14 CFR 298.3(b)
that carries passengers on at least five
round trips per week on at least one
route between two or more points
according to published flight schedules
and uses small aircraft.
(c) Large hub airport means an airport
that accounts for at least 1.00 percent of
the total enplanements in the United
States.
(d) Medium hub airport means an
airport accounting for at least 0.25
percent but less than 1.00 percent of the
total enplanements in the United States.
PO 00000
Frm 00018
Fmt 4701
Sfmt 4702
(e) Small aircraft means any aircraft
originally designed to have a maximum
passenger capacity of up to 60 seats.
(f) Tarmac delay means the holding of
an aircraft on the ground either before
taking off or after landing with no
opportunity for its passengers to
deplane.
§ 259.4 Contingency plan for lengthy
tarmac delays.
(a) Adoption of plan. Each certificated
air carrier and each commuter air carrier
that operates scheduled domestic
passenger service using any aircraft with
a design capacity of more than 30 seats
shall adopt a contingency plan for
lengthy tarmac delays for its scheduled
and public charter flights and shall
adhere to this plan’s terms.
(b) Contents of plan. Each
contingency plan for lengthy tarmac
delays shall include, at a minimum, the
following:
(1) Assurance of the maximum
amount of time that the air carrier will
permit the aircraft to remain on the
tarmac before proceeding to a gate and
allowing passengers to deplane,
(2) Assurance of adequate food, water,
and lavatory facilities, as well as
medical attention if needed, while the
aircraft remains on the tarmac,
(3) The amount of time on the tarmac
that triggers the provision of the services
enumerated in paragraph (b)(2) of this
section,
(4) Assurance of sufficient resources
to implement the plan, and
(5) Assurance that the plan has been
coordinated with airport authorities at
all medium and large hub airports that
the carrier serves.
(c) Amendment of plan. At any time,
an air carrier may amend its
contingency plan for lengthy tarmac
delays to decrease the time intervals
covered in paragraphs (b)(1) and (b)(3)
of this section. An air carrier may also
amend its plan to increase these
intervals, in which case the amended
plan shall apply only to those flights
that are first offered for sale after the
plan’s amendment.
(d) Retention of records. Each air
carrier that is required to adopt a
contingency plan for lengthy tarmac
delays shall retain for two years the
following information about any onground delay that either triggers its
contingency plan or lasts at least four
hours:
(1) The length of the delay,
(2) The cause of the delay, and
(3) The actions taken to minimize
hardships for passengers, including the
provision of food and water, the
maintenance and servicing of lavatories,
and medical assistance.
E:\FR\FM\08DEP2.SGM
08DEP2
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 / Proposed Rules
§ 259.5
Customer service plan.
(a) Adoption of plan. Each U.S. air
carrier that accounts for at least one
percent of scheduled domestic
passenger revenue shall adopt a
customer service plan for its scheduled
flights and any public charter flights
that it sells directly to the public and
shall adhere to this plan’s terms.
(b) Contents of plan. Each customer
service plan shall, at a minimum,
address the following subjects:
(1) Offering the lowest fare available,
(2) Notifying consumers of known
delays, cancellations, and diversions,
(3) Delivering baggage on time,
(4) Allowing reservations to be held or
cancelled without penalty for a defined
amount of time,
(5) Providing prompt ticket refunds,
(6) Properly accommodating disabled
and special-needs passengers (At a
minimum, this provision must refer to
the air carrier’s contingency plan for
lengthy tarmac delays.),
(7) Meeting customers’ essential needs
during long on-aircraft delays,
(8) In the case of oversales, handling
‘‘bumped’’ passengers with fairness and
consistency,
(9) Disclosing travel itinerary,
cancellation policies, frequent flyer
rules, and aircraft configuration,
(10) Ensuring good customer service
from code-share partners, and
(11) Improving response to customer
complaints.
(c) Self-auditing of plan and retention
of records. Each air carrier that is
required to adopt a customer service
plan shall audit its own adherence to its
plan annually and shall make the results
of its audits available for the
Department’s review upon request for
two years.
§ 259.6
Contract of Carriage.
rwilkins on PROD1PC63 with PROPOSALS2
(a) Each air carrier that is required to
adopt a contingency plan for lengthy
tarmac delays shall incorporate this
plan into its contract of carriage.
(b) Each air carrier that is required to
adopt a customer service plan shall
incorporate this plan in its contract of
carriage.
VerDate Aug<31>2005
16:39 Dec 05, 2008
Jkt 217001
(c) Each air carrier that has a Web site
shall post its entire contract of carriage
on this site.
§ 259.7
Response to consumer problems.
(a) Designated advocates for
passengers’ interests. Each certificated
air carrier and each commuter air carrier
that operates scheduled domestic
passenger service using any aircraft with
a design capacity of more than 30
passenger seats shall designate an
employee at its system operations center
and at each airport dispatch center who
shall be responsible for monitoring the
effects of flight delays, flight
cancellations, and lengthy tarmac delays
on passengers. This employee shall have
input into decisions on which flights to
cancel and which to delay the longest.
(b) Informing consumers how to
complain. Each certificated air carrier
and each commuter air carrier that
operates scheduled domestic passenger
service using any aircraft with more
than 30 passenger seats shall provide
the name, address, telephone number,
and e-mail or web-mail address of the
person with whom or the office with
which to file a complaint on its Web
site, on all e-ticket confirmations, and,
upon request, at each ticket counter and
gate.
(c) Response to complaints. Each
certificated air carrier and each
commuter carrier that operates
scheduled domestic passenger service
using any aircraft with a design capacity
of more than 30 passenger seats shall
acknowledge receipt of each complaint
to the complainant within 30 days of
receiving it and shall send a substantive
response within 60 days of receiving it.
PART 399—[AMENDED]
4. The authority citation for part 399
continues to read as follows:
Authority: 49 U.S.C. 40101 et seq.
5. Section 399.81 is revised to read as
follows:
§ 399.81 Unrealistic or deceptive
scheduling.
(a) It is the policy of the Department
to consider unrealistic scheduling of
PO 00000
Frm 00019
Fmt 4701
Sfmt 4702
74603
flights by any air carrier providing
scheduled passenger air transportation
to be an unfair or deceptive practice and
an unfair method of competition within
the meaning of 49 U.S.C. 41712.
(b) With respect to the advertising of
schedule performance, it is the policy of
the Department to regard as an unfair or
deceptive practice or an unfair method
of competition the use of any figures
purporting to reflect schedule or ontime performance without indicating the
basis of the calculation, the time period
involved, and the pairs of points or the
percentage of systemwide operations
thereby represented and whether the
figures include all scheduled flights or
only scheduled flights actually
performed.
(c) Chronically delayed flights.
(1) This paragraph applies to each
U.S. direct air carrier that holds a
certificate issued under 49 U.S.C. 41102
to operate passenger service and/or
cargo and mail service and that accounts
for at least one percent of domestic
scheduled passenger revenue.
(2) It is the policy of the Department
to consider any domestic flight that is
operated at least 30 times in a calendar
quarter and arrives more than 15
minutes late or is cancelled more than
70 percent of the time during that
quarter to be chronically delayed.
(3) For purposes of this paragraph, the
Department considers all flights in a
given city-pair market whose scheduled
departure times are within 30 minutes
of the most frequently occurring
scheduled departure time to be one
single flight.
(4) It is the policy of the Department
to consider any flight that is chronically
delayed for three consecutive calendar
quarters to be unrealistic or deceptive
scheduling within the meaning of
paragraph (a) of this section.
Issued this 17th, day of November 2008, at
Washington, DC.
Michael W. Reynolds,
Acting Assistant Secretary for Aviation and
International Affairs.
[FR Doc. E8–28527 Filed 12–5–08; 8:45 am]
BILLING CODE 4910–9X–P
E:\FR\FM\08DEP2.SGM
08DEP2
Agencies
[Federal Register Volume 73, Number 236 (Monday, December 8, 2008)]
[Proposed Rules]
[Pages 74586-74603]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-28527]
[[Page 74585]]
-----------------------------------------------------------------------
Part II
Department of Transportation
-----------------------------------------------------------------------
14 CFR Parts 234, 259, and 399
Enhancing Airline Passenger Protections; Proposed Rule
Federal Register / Vol. 73, No. 236 / Monday, December 8, 2008 /
Proposed Rules
[[Page 74586]]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary
14 CFR Parts 234, 259, and 399
[Docket No. DOT-OST-2007-0022]
RIN No. 2105-AD72
Enhancing Airline Passenger Protections
AGENCY: Office of the Secretary (OST), Department of Transportation
(DOT).
ACTION: Notice of proposed rulemaking (NPRM).
-----------------------------------------------------------------------
SUMMARY: The Department of Transportation seeks comment on rules it is
proposing to enhance airline passenger protections in the following
ways: by requiring air carriers to adopt contingency plans for lengthy
tarmac delays and incorporate them in their contracts of carriage, by
requiring air carriers to respond to consumer problems, by deeming the
continued operation of a flight that is chronically late to be unfair
and deceptive in violation of 49 U.S.C. 41712, by requiring air
carriers to publish information on flight delays on their Web sites,
and by requiring air carriers to adopt customer service plans,
incorporate these into their contracts of carriage, and audit their own
compliance with their plans. The Department takes this action on its
own initiative in response to the many recent instances when passengers
have been subject to waits on airport tarmacs for very long periods and
also in response to the ongoing high incidence of flight delays.
DATES: Comments should be filed by February 6, 2009. Late-filed
comments will be considered to the extent practicable.
ADDRESSES: You may file comments identified by the docket number DOT-
OST-2007-0022 by any of the following methods:
[cir] Federal eRulemaking Portal: go to https://www.regulations.gov
and follow the online instructions for submitting written comments. A
standard form has been created for those who wish to use it in
submitting comments.
[cir] Mail: Docket Management Facility, U.S. Department of
Transportation, 1200 New Jersey Ave., SE., Room W12-140, Washington, DC
20590-0001.
[cir] Hand Delivery or Courier: West Building Ground Floor, Room
W12-140, 1200 New Jersey Ave., SE., between 9 a.m. and 5 p.m. ET,
Monday through Friday, except Federal Holidays.
[cir] Fax: (202) 493-2251.
Instructions: We strongly encourage you to use the standard form to
submit comments. To access the form, go to https://www.regulations.gov
and use the SEARCH DOCUMENTS field provided to input the docket number
for this rulemaking. Then, you can search the index for ``Public
comment standard form.'' This form may then be moved to your computer
desktop, where you can type in your comments. You may then attach the
form when you submit your comments to the docket.
Using the standard form will eliminate the need for you to type a
title, headings and questions since the form identifies the rulemaking
on which you are commenting, sets out the headings identified in the
SUPPLEMENTARY INFORMATION section of this document and lists the
questions that we have asked in the NPRM. It will also make it easier
for you, other commenters and the Department to easily search or sort
the comments submitted on the various issues in the rulemaking.
If you do not use the standard form, you must include the agency
name and docket number DOT-OST-2007-0022 or the Regulatory
Identification Number (RIN) for the rulemaking at the beginning of your
comment. All comments received will be posted without change to https://
www.regulations.gov, including any personal information provided.
Privacy Act: Anyone is able to search the electronic form of all
comments received in any of our dockets by the name of the individual
submitting the comment (or signing the comment if submitted on behalf
of an association, a business, a labor union, etc.). You may review
DOT's complete Privacy Act statement in the Federal Register published
on April 11, 2000 (65 FR 19477-78), or you may visit https://
DocketsInfo.dot.gov.
Docket: For access to the docket to read background documents or
comments received, go to https://www.regulations.gov or to the street
address listed above. Follow the online instructions for accessing the
docket.
FOR FURTHER INFORMATION CONTACT: Daeleen Chesley or Blane A. Workie,
Office of the Assistant General Counsel for Aviation Enforcement and
Proceedings, U.S. Department of Transportation, 1200 New Jersey Ave.,
SE., Washington, DC 20590, 202-366-9342 (phone), 202-366-7152 (fax),
betsy.wolf@dot.gov or blane.workie@dot.gov (e-mail).
SUPPLEMENTARY INFORMATION:
Background
On November 15, 2007, the Department of Transportation (DOT or
Department) issued an Advance Notice of Proposed Rulemaking (ANPRM) in
Docket DOT-OST-2007-22 entitled ``Enhancing Airline Passenger
Protections.'' This ANPRM was published in the Federal Register five
days later. See ``Department of Transportation, Office of the
Secretary, 14 CFR Parts 234, 253, 259, and 399 [Docket No. DOT-OST-
2007-0022], RIN No. 2105-AD72, 72 FR 65233 et seq. (November 20,
2007).'' We announced in the ANPRM that we were considering adopting or
amending rules to address several concerns, including, among others,
the problems consumers face when aircraft sit for hours on airport
tarmacs and the growing incidence of flight delays. We observed that
beginning in December of 2006 and continuing through the early spring
of 2007, weather problems had kept more than a few aircraft sitting for
long hours on airport tarmacs, causing the stranded passengers undue
discomfort and inconvenience. We observed further that passengers were
also being harmed by the high incidence of less extreme flight delays:
In the first seven months of 2007, only 72.23 percent of flights
arrived on time, a lower percentage than for the same period in any of
the previous 12 years. (On-time arrival performance remains
problematic: It has improved only slightly since the issuance of the
ANPRM. For the first five months of 2008, it was the second worst for
these months in 14 years.) We acknowledged that the industry and
interested observers have attributed both the marathon tarmac waits and
the epidemic of flight delays to a number of factors besides weather,
such as capacity and operational constraints, for example. Some of
these are being addressed by the Federal Aviation Administration (FAA)
and certain airports in other contexts, but in the meantime, we decided
to explore the adoption of regulatory measures to address passengers'
concerns.
Thus, citing our authority and responsibility under 49 U.S.C.
41712, in concert with 49 U.S.C. 40101(a)(4) and 40101(a)(9) and 49
U.S.C. 41702, to protect consumers from unfair or deceptive practices
and to ensure safe and adequate service in air transportation, we
called for comment on seven potential measures. We intended these
measures to ameliorate difficulties that passengers experience without
creating undue burdens for the carriers. We also posed questions for
commenters to answer and invited them
[[Page 74587]]
to suggest other measures to address the problems at issue.
The measures proposed in the ANPRM covered the following subjects:
Contingency plans for lengthy tarmac delays, carriers' responses to
consumer problems, chronically delayed flights, delay data on Web
sites, complaint data on Web sites, reporting of on-time performance of
international flights, and customer service plans. The specifics of the
ANPRM's proposals are set forth below in the context of the measures we
are proposing--or not proposing--in this notice.
We received approximately 200 comments in response to the ANPRM. Of
these, 13 came from members of the industry--i.e., air carriers, air
carrier associations, and other industry trade associations--and the
rest came from consumers, consumer associations, and two U.S. Senators.
On the consumer side, some 131 individual members of the Coalition for
an Airline Passengers Bill of Rights (CAPBOR) filed identical or nearly
identical comments. CAPBOR's founder and spokesperson, Kate Hanni, also
filed comments with additional material on behalf of both CAPBOR and
the Aviation Consumer Action Project (ACAP). Another 34 unaffiliated
individuals filed comments, as did five other consumer associations:
ACAP, the National Business Travel Association (NBTA), the Federation
of State Public Interest Research Groups (US PIRG), Public Citizen, and
the National Consumers League.
On the industry side, four carriers filed comments: Jet Airways
(India), Ltd., Delta Air Lines, Inc., China Eastern Airlines, and
Virgin Atlantic Airways, Ltd. Five carrier associations filed comments:
The Association of Asia Pacific Airlines (AAPA), the National Air
Carrier Association (NACA), the International Air Transport Association
(IATA), the Air Transport Association of America (ATA), and the Air
Carrier Association of America (ACAA). Two travel agency associations,
the American Society of Travel Agents (ASTA) and the Interactive Travel
Services Association (ITSA) also filed comments, as did the Airport
Council International, North America (ACI-NA).
In general, the consumers and consumer associations maintained that
the Department's proposals do not go far enough, while the carriers and
carrier associations attributed the current problems mostly to factors
beyond their control such as weather and the air traffic control system
and tended to characterize the proposals as unnecessary and unduly
burdensome. The travel agency associations expressed support for
consumer protections but not at their members' expense. The commenters'
positions that are germane to the issues raised in the ANPRM are set
forth below in the context of the measures we are proposing--or not
proposing--here.
Notice of Proposed Rulemaking
Having considered the comments, we have decided to propose rules to
do the following: (1) Require air carriers to adopt contingency plans
for lengthy tarmac delays and to incorporate these plans in their
contracts of carriage, (2) require air carriers to respond to consumer
problems, (3) declare the operation of flights that remain chronically
delayed to be an unfair and deceptive practice and an unfair method of
competition, (4) require air carriers to publish delay data on their
Web sites, and (5) require air carriers to adopt customer service
plans, incorporate these in their contracts of carriage, and audit
their adherence to their plans. We have decided not to propose rules to
require air carriers to publish complaint data on their Web sites or to
report on-time performance of international flights. We are proposing
that the rules take effect 180 days after their publication.
We invite all interested persons to comment on the proposals set
forth in this notice. Our final action will be based on the comments
and supporting evidence filed in this docket, on our own analysis and
regulatory evaluation, and on the ongoing work of our National Task
Force to Develop Model Contingency Plans to Deal with Lengthy Airline
On-Board Ground Delays (Tarmac Delay Task Force).
Proposals
1. Contingency Plans
The ANPRM: We stated in the ANPRM that we were considering
requiring every certificated or commuter air carrier\1\ that operates
domestic scheduled passenger service using any aircraft with more than
30 passenger seats to develop and implement a contingency plan for
lengthy tarmac delays. (This plan would apply to all of the carrier's
flights, including those involving aircraft with 30 or fewer seats.)
Each covered carrier would be required to incorporate its plan in its
contract of carriage. This would enable passengers to sue for breach of
contract in the event that a carrier fails to adhere to its plan. Each
plan would have to include at least the following: The maximum tarmac
delay that the carrier will permit, the amount of time on the tarmac
that triggers the plan's terms, assurance of adequate food, water,
lavatory facilities, and medical attention, if needed, while the
aircraft remains on the tarmac, assurance of sufficient resources to
implement the plan, and assurance that the plan has been coordinated
with airport authorities at medium and large hub airports. Carriers
would also be required to make their complete contracts of carriage,
including contingency plans, available on their Web sites and to retain
for two years the following information for any ground delay that
either triggers their contingency plans or lasts at least four hours:
The length of the delay, the cause of the delay, and the actions taken
to minimize hardships for passengers. Our proposal did not contemplate
that the Department would review or approve the plans, but we stated
that the Department would consider failure to comply with any of the
above requirements--including implementing the plan as written--to be
an unfair and deceptive practice within the meaning of 49 U.S.C. 41712
and therefore subject to enforcement action.
---------------------------------------------------------------------------
\1\ A certificated air carrier is a U.S. direct air carrier that
holds a certificate issued under 49 U.S.C. 41102 to operate
passenger and/or cargo and mail service. Air taxi operators and
commuter air carriers operating under 14 CFR part 298 are exempted
from the certification requirements of 49 U.S.C. 41102. Some
carriers that would otherwise be eligible for the air taxi or
commuter exemption have opted to be certificated. An air taxi
operator is an air carrier that transports passengers or property
and is not a commuter air carrier as defined in 14 CFR part 298. A
commuter air carrier is an air taxi operator that carries passengers
on at least five round trips per week on at least one route between
two or more points according to a published flight schedule, using
small aircraft--i.e., aircraft originally designed with the capacity
for up to 60 passenger seats. See 14 CFR 298.2.
---------------------------------------------------------------------------
The Comments: CAPBOR and its members believe that this proposal
does not go far enough. They maintain that the Department should
establish minimum standards for contingency plans via regulation and
should also review and approve the plans rather than allow each carrier
the leeway to set what might well be overly lax standards. They also
maintain that the Department should monitor carriers' performance under
their plans. In their view, requiring carriers to incorporate their
contingency plans into their contracts of carriage will not protect
passengers, because as a practical matter these contracts cannot be
enforced. They do support publication of contingency plans in contracts
of carriage, however, and they argue that these plans should be
airport-specific to account for differences among airports. CAPBOR and
its members contend that because an airport's concessions are often
closed by the time that a flight is cancelled and passengers allowed to
deplane, we
[[Page 74588]]
should require airports to contract with their vendors to require that
concessions remain open during lengthy tarmac delays. They request that
in any rule proposed or adopted, we refer to ``potable water'' and
``operable lavatories'' rather than simply ``water'' and ``lavatory
facilities,'' respectively, and that we include a requirement for
adequate ventilation.
Individual commenters make similar points. For example, they, too,
tend to oppose allowing the carriers to set their own standards,
particularly those involving the amount of time that triggers the
provisions of the contingency plans or the maximum amount of time on
the tarmac before the carrier must return to a gate and allow
passengers to deplane.
Of the other consumer associations, ACAP concurs with CAPBOR, as
does U.S. PIRG. The latter suggests three hours as the maximum interval
before passengers are allowed to deplane. Also concurring with CAPBOR
are Public Citizen and the National Consumers League. NBTA has a
different point of view: It contends that customer service is by nature
market driven and that airlines are better situated than the government
to gauge both their customers' expectations and whether putative
protective measures afford benefits that outweigh their costs--costs
that will inevitably be passed on to the traveling public. NBTA does
not support requiring the carriers to develop and publish contingency
plans, but it believes that carriers that do not do so will provide
poorer service and thus lose business. What NBTA does support is a
requirement that carriers provide what it calls ``baseline passenger's
rights'' in whatever way they find most effective and cost efficient.
NBTA's list of these rights includes access to lavatory facilities,
access to water or other liquids, access to food for tarmac delays
lasting more than six hours, ways for passengers with medical
emergencies to request and receive medical attention, and cabin
temperature suitable for normal travel attire. NBTA also supports
requiring carriers to maintain records on lengthy tarmac delays as a
tool for the Department and others to use for analyzing airline
performance.
Senators Barbara Boxer and Olympia Snowe take the position that the
Department should set minimum standards for protecting passengers
during lengthy tarmac delays. They believe that passengers should be
permitted to deplane after three hours on the tarmac.
As for members of the industry, Delta, the sole carrier that
commented individually on this proposal, both supports the principle of
contingency plans for lengthy tarmac delays and states that it has one
already. Its plan does not have a time limit for tarmac delays,
however, because in Delta's judgment passengers fare better overall if
Delta retains the flexibility to respond to each situation as it deems
appropriate at the time. It contends, for example, that categorically
requiring the return of planes to the gate after a specified interval
would probably result in more flight cancellations than occur now.
Delta opposes mandating coordination with airport authorities in the
preparation of a contingency plan as ``unnecessary and potentially
unmanageable.'' Delta does not object to a record-retention
requirement, but it believes that two years' retention is too long and
that six months would suffice. It maintains that any such requirement
should be triggered by a uniform delay interval, set by the Department,
rather than be permitted to vary from carrier to carrier according to
disparate contingency plans; Delta itself believes four hours to be a
reasonable standard. Delta does not address whether the contingency
plans should be incorporated into the contracts of carriage.
Of the carrier associations that commented on this proposal, NACA
agrees in principle that carriers should meet their passengers' needs
for food, water, lavatories, and, if necessary, medical attention
during extraordinary ground delays and that they should formulate
contingency plans for achieving this goal. NACA thinks that the
Department should work with the carriers to develop guidance on the
following questions: What kinds of food should passengers reasonably
expect during a long delay; what should be required on flights whose
aircraft have limited or no kitchen resources because no food service
is provided in normal circumstances; what should be expected of
carriers whose aircraft lack storage capability for additional
``emergency'' food and that have no catering facilities and no contract
for catering services at the airport at which they are delayed; and
what sort of medical attention and supplies can passengers reasonably
expect? NACA opposes inclusion of carriers' contingency plans in their
contracts of carriage, because the contracts are legally binding, so
passengers would have a private right of action against any carrier
that did not adhere to the provisions of its plan. ``Given the vagaries
of what would constitute appropriate emergency services,'' NACA states,
``and in the absence of a specific statutory mandate, we believe that
the inclusion of such provisions within the contract of carriage
exposes carriers to a myriad of unfounded lawsuits.'' In lieu of
incorporation of the contingency plans in the contracts of carriage,
NACA supports requiring that each carrier provide public notice of its
plan--for example, by including a notice on its Web site, by posting
notices at check-in counters, or by including a notice in its in-flight
magazine or in other materials available to passengers on the plane. It
suggests that the Department could require all carriers to provide it
with copies of their plans and then itself make the plans available to
the public. NACA's comments are endorsed by ACAA.
ATA commented extensively on this proposal, and IATA supports ATA's
comments. ATA prefaced its comments by asserting that the Department
should focus on addressing the root causes of delays, which it
characterizes as ``insufficient airspace capacity and an operating
environment handcuffed by outdated radar technology,'' in addition to
calling for passenger protections. ATA agrees in principle that
carriers should have contingency plans for lengthy tarmac delays,
provided that each air carrier is permitted to decide on the details of
its own plan based on its own unique facilities, equipment, operating
procedures, and network. ATA not only supports the Department's
proposal not to prescribe the terms of carriers' contingency plans, but
it particularly opposes a set interval of time after which an aircraft
must be returned to the gate, claiming that such a requirement would do
passengers more harm than good. Among the potential negative
consequences ATA lists are the required return to the gate when the
aircraft is next in line for takeoff, potential conflicts with
governmental orders during a pandemic that passengers be kept on
aircraft, and conservative decisions that result in wasting passenger,
aircraft, and crew time and affect downstream connecting passengers
adversely. ATA also argues that a strict requirement that aircraft
return to the gate after a set interval would stifle competition: It
reasons that carriers might otherwise choose alternate ways to address
the competing passenger interests and needs that arise during a lengthy
tarmac delay.
ATA reports that carriers already have both general contingency
plans and airport-specific contingency plans. It states that carriers
do not intend to publish the latter, and it recommends that the
Department allow them flexibility in how they notify consumers
[[Page 74589]]
of the former. Most carriers, it assumes, would post their contingency
plans on their Web sites. ATA opposes requiring carriers to include
their contingency plans in their contracts of carriage and in fact
doubts that the Department has the authority to do this in the
aftermath of deregulation. As a practical matter, ATA claims, inclusion
of carriers' general contingency plans in their contracts of carriage
would require the deletion of technical and operational terms that do
not belong in a contract and the addition of qualifying statements so
that carriers would retain the flexibility to make different
operational decisions depending on the facts of the situation,
including extraordinary circumstances. ATA also opposes requiring
incorporation of contingency plans in carriers' contracts of carriage
because this would expose them to litigation under inconsistent
standards among the states and among foreign countries. It predicts
that standards would fluctuate as carriers took steps to minimize their
exposure. ATA opposes the proposed recordkeeping requirement as
redundant of other existing and proposed regulations.
RAA prefaced its comments by asking the Department to keep in mind,
when proposing rules, what it characterizes as ``the unique
relationship between most regional airlines subject to the proposals *
* * and their passengers.'' RAA states that over 90 percent of its
members' passengers fly under ticketing, marketing, scheduling, and
passenger processing and handling arrangements that are controlled by
the major-carrier partners of RAA's members--in fact, these passengers'
contracts of carriage are with the major carrier, not the regional
airlines. RAA states further that while its members are responsible for
operating their flights safely and can cancel or divert them for
reasons of safety, most delays, diversions, and cancellations are
determined by the FAA or the regional airlines' major-carrier partners.
RAA opposes regulations that would burden its members vis-[agrave]-vis
the railroads and bus companies with which they compete for passengers.
Regarding contingency plans, RAA asks the Department to let
airlines adopt plans that reflect their own circumstances,
capabilities, and passenger service standards. It asks the Department
to apply requirements for contingency plans and recordkeeping only to
the airline that has a contract of carriage with the passenger and also
to require contingency plans of ``other critical parties such as the
FAA and the airports.'' In RAA's view, requiring enforceable
contingency plans would be contrary to deregulation and as a practical
matter would prevent carriers from responding flexibly to the many
kinds of delays that occur. It states that because contingency planning
varies from airport to airport, requiring a contingency plan for each
airport to be published and enforced through the contract of carriage
would be both impracticable and burdensome. RAA opposes requiring
carriers to retain records on delayed flights, both as redundant of
existing requirements of the Department's Bureau of Transportation
Statistics and as a burden that would yield little if any public
benefit. RAA contends that its members are constrained not only by
their major-carrier partners' control over delay decisions and their
differing standards for passenger service but also by the capacity
constraints of their own aircraft--aircraft with limited capacity for
food, water, and lavatory facilities. If contingency plans are to be
required, RAA takes the position that they should only be required of
major carriers, with implementation to be arranged by the major carrier
and its regional airline partners on flights operated with aircraft
with more than 30 passenger seats. RAA opposes coverage of flights
operated with smaller aircraft.
ACI-NA supports this proposal and states that it recently convened
a meeting of more than 100 officials from airports, airlines, passenger
organizations, and the federal government to develop an outline for a
contingency plan. Along with ``best practices'' in place at North
American airports, this plan will be provided to the Department's
Tarmac Delay Task Force.
Of the travel agency associations, ASTA strongly favors requiring
carriers to adopt contingency plans and requiring the incorporation of
these plans in air carriers' contracts of carriage, but it believes
that the proposal in the ANPRM does not go far enough. ASTA implies,
without explanation, that even with the plans incorporated in the
contracts of carriage, they will not be enforceable unless the
Department reviews them. ASTA suggests that any rule that we adopt
``require very specific plans in the general mode of `if this happens,
we will take the following specific steps to assure proper care of
passengers.' '' ASTA also supports the recordkeeping requirement and
suggests that it be triggered by a delay of three hours. Also, ASTA
believes that carriers should be required to coordinate not only with
airport authorities at medium and large hub airports but with the
authorities at ``all primary airports.'' ITSA did not address this
proposal.
Proposed Rule: We have decided to propose a rule along the lines
set forth in the ANPRM, and we invite comment from all interested
persons. Specifically, we propose to adopt a new rule, 14 CFR part 259,
which, among other things, would require any certificated or commuter
air carrier that operates domestic passenger service using any aircraft
with a design capacity of more than 30 passenger seats to develop a
contingency plan for long tarmac delays of scheduled and public charter
flights and to adhere to this plan's terms. This plan would apply to
all of the carrier's scheduled and public charter flights, including
those with aircraft having a design capacity of 30 or fewer seats. We
are not proposing that the rule cover single-entity charters and other
charters in which consumers have some bargaining leverage. The rule
would require each carrier to incorporate its contingency plan in its
contract of carriage. At a minimum, each plan must include the
following: The maximum tarmac delay that the carrier will permit, the
amount of time on the tarmac that will trigger the plan's terms, the
assurance of adequate food, water, and lavatory facilities, as well as
medical attention if needed, while the aircraft remains on the ground,
assurance of sufficient resources to implement the plan, and assurance
that the plan has been coordinated with airport authorities at medium
and large hub airports. The rule would require carriers to retain for
two years the following information on any on-ground delay that either
triggers their contingency plans or lasts at least four hours: The
length of the delay, the cause of the delay, and the steps taken to
minimize hardships for passengers (including providing food and water,
maintaining lavatories, and providing medical assistance). Failure to
do any of the above would be considered an unfair and deceptive
practice within the meaning of 49 U.S.C. 41712 and subject to
enforcement action, which could result in an order to cease and desist
as well as the imposition of civil penalties.
In adopting this approach, we are tentatively rejecting the
suggestions of those consumers and groups who believe that the
Department should set minimum standards for the contingency plans
rather than allow each carrier to set its own standards based on its
particular circumstances. We continue to be of the tentative view based
on the information available to us that the Department should not
substitute its judgment in this area for that of the air carriers.
Nevertheless, we ask interested
[[Page 74590]]
persons to comment on whether any final rule that we may adopt should
include either or both of the following: A uniform standard for the
time interval that would trigger the terms of carriers' contingency
plans and a uniform standard for the time interval after which carriers
would be required to allow passengers to deplane. Commenters who
support the adoption of either or both requirements by rulemaking
should propose specific amounts of time and state why they believe
these intervals to be appropriate.
As for incorporation of the contingency plans in carriers'
contracts of carriage, at this stage we are tentatively rejecting
consumers' arguments that this requirement would be ineffectual,
because no commenter has provided any support for its assertion that as
a practical matter the contracts of carriage cannot be enforced,
particularly where class-action litigation is available. We are also
tentatively rejecting carriers' arguments that we should not require
incorporation because this would subject them to the risk of
inconsistent standards among the various jurisdictions. This risk
exists already, since the carriers' contracts of carriage are
enforceable in state courts, and it is not increased with the addition
of new enforceable terms to these contracts. ATA has failed to
establish that we lack the authority to require that contingency plans
be incorporated in carriers' contracts of carriage. Our broad authority
under 49 U.S.C. 41712 to prohibit unfair and deceptive practices
encompasses this power. Indeed, 14 CFR part 253 shows that we have the
authority not only to require that contracts of carriage include
specified terms but also to regulate the means by which contract terms
are disclosed to consumers. We tentatively believe that in providing
for private enforcement of the plans as well as enforcement action by
the Department, we are creating a stronger incentive for carriers to
adhere to their plans. We invite interested persons to comment on the
implications of our creating a private right of action based on a
carrier's failure to follow the terms of its contingency plan.
Commenters should address the potential for multiple lawsuits by
classes as well as individual plaintiffs and the potential for
inconsistent judicial decisions among the various jurisdictions.
Commenters should also address whether and to what extent requiring the
incorporation of contingency plans in carriers' contracts of carriage
might weaken existing plans: That is, would the requirement encourage
carriers to exclude certain key terms from their plans in order to
avoid compromising their flexibility to deal with circumstances that
are both multifarious and unpredictable?
As for the other points made by consumers, we are not proposing to
require the plans to be airport-specific, although carriers may choose
to adopt different standards for each airport in their plans. We are
not proposing here to require airports to provide for concessions to
remain open during lengthy tarmac delays, in part because we doubt that
we have the authority to do so. Our proposed rule does not refer to
``potable water'' or ``operable lavatories,'' because water and
lavatory facilities that are ``adequate'' are necessarily potable and
operable, respectively. Furthermore, the quality of drinking water on
aircraft is regulated by the Environmental Protection Agency (EPA). Our
proposed rule does not address ventilation, because we have no basis at
this stage to assess the adequacy of ventilation or to require
potentially significant modifications to aircraft.
As for the other points made by carriers, those that rank
operational flexibility as their highest priority are free to adopt a
relatively long interval as their standard for returning a plane to the
gate and allowing passengers to deplane. Were a carrier to follow this
strategy only to see its market shares declining vis-[aacute]-vis its
competitors with shorter intervals in their contingency plans, the
carrier could amend its plan accordingly. Conversely, were a carrier to
decide that it wanted to amend its plan to allow itself more time
before returning the aircraft to the gate, the proposed rule provides
that the amended plan would only apply to flights that the carrier has
not yet offered for sale. This condition would protect consumers who
have booked flights under the impression that they will not be kept on
the tarmac more than, say, three hours from the unpleasant discovery
that by the time they actually fly the carrier has amended its
contingency plan to make that interval six hours.
As for RAA's requests that we treat regional carriers and their
larger-carrier code-share partners differently, we have decided not to
do so at this stage in the rulemaking process. The rule that we are
proposing would apply to both partners in a code-share arrangement,
because even if the determination to cancel a flight or keep it on the
tarmac is made by the major carrier or results from action by the FAA,
it is the carrier operating the flight that remains directly
responsible for the passengers for the duration of the delay. We expect
that the major carriers and their regional code-share partners would
collaborate on their contingency plans to come up with standards that
suit both parties. We recognize that the regional carriers' plans would
reflect the limited size and capacity of their aircraft, and nothing in
the rule would bar a regional carrier from providing differently for
aircraft of different sizes.
Nevertheless, while we are proposing here not to treat regional
carriers and larger carriers differently in the rule, we invite
interested persons to comment on whether, in the event that we adopt a
rule requiring contingency plans, we should limit its applicability to
carriers that operate large aircraft--i.e., aircraft originally
designed to have a maximum passenger capacity of more than 60 seats.
Proponents of this alternative approach should provide arguments and
evidence in support of their position, as should opponents.
2. Response to Consumer Problems
The ANPRM: This proposal would require every certificated and
commuter air carrier that operates domestic scheduled passenger service
using any aircraft with a design capacity of more than 30 passenger
seats to address mounting consumer problems in the following ways: At
its system operations center and at each airport dispatch center,
designate an employee to be responsible for monitoring the effects of
flight delays, flight cancellations, and lengthy tarmac delays on
passengers and have input into decisions such as which flights are
cancelled and which are subject to the longest delays; on its Web site,
on all e-ticket confirmations, and, on request, at each ticket counter
and gate, inform consumers how to file a complaint with the carrier
(name of person or office, address, and telephone number); and send a
response to each consumer complaint received within 30 days of receipt.
The Comments: CAPBOR and its members support the proposal and take
the position that carriers should be required to provide postal
addresses, telephone numbers, and e-mail addresses for customer
service, to acknowledge receipt of a complaint within 24 hours, to
resolve the complaint within 30 days of receiving it, and to notify the
Department if the passenger disagrees with the resolution. In addition,
CAPBOR calls for a requirement that consumers' complaints to the
carriers and complaints that the Department refers to the carriers be
combined and tabulated by category, with the results made available to
the public every month.
Of the individual commenters, one agrees in principle with the
proposal
[[Page 74591]]
but voices concern over the cost of creating a position at each airport
for responding to complaints, reasoning that this would not affect
delays. Another voices concern that not all consumers have access to
the Internet and favors requiring travel agents to provide the
information on where to complain as well.
Of the other consumer associations, ACAP and U.S. PIRG concur with
CAPBOR, Public Citizen concurs with CAPBOR and U.S. PIRG, and the
National Consumer League concurs with U.S. PIRG. NBTA, in contrast,
characterizes the proposal as micromanagement of airline customer
service. NBTA maintains that most if not all carriers have customer
service departments to address problems that arise and that poor
responses will affect consumers' business decisions.
Delta is again the only carrier that commented individually on this
issue. Delta deems a regulation requiring the designation of carrier
employees responsible for what it characterizes as responding to and
managing extended ground delays and flight cancellations, and
prescribing such employees' locations, to be unnecessary, because such
a requirement is implicit if the Department mandates contingency plans.
Delta is concerned, moreover, that the proposal could work to undermine
carriers' ability to establish processes and management hierarchies
that ensure compliance with their contingency plans. Delta states that
it is committed to providing multiple customer-friendly channels for
complaints, and given the rapid development of communication
technologies, the carrier opposes making the use of particular channels
mandatory. Delta opposes a 30-day requirement for responding to
consumer complaints and posits 60 days as the current industry
standard. It cautions that in cases involving international travel,
particularly under code-sharing arrangements, ``coordinating the best
solution for the customer may require more than 30 days, especially if
a detailed investigation is needed.'' In addition, Delta is concerned
that seasonal surges in complaint volume or unexpected events could
mean financial hardship for a carrier that was required to increase
staffing temporarily to respond to all complaints within 30 days.
Of the carrier associations, NACA states that its members already
monitor their flight operations at each airport and maintains that it
should be up to each carrier to decide if it wants to have this be one
employee's sole responsibility or include it with an employee's other
responsibilities. As for responding to complaints, NACA contends that
the Department should specify how complaints are to be lodged with the
carriers if it is going to require a response to each complaint.
Whether the complaint is handed to an airline agent at the airport,
submitted via e-mail, or sent by U.S. mail, the complainant should be
required to have proof that the carrier received the complaint. NACA
believes 30 days to be insufficient for responding to complaints but
would accept a 45-day requirement even though it prefers 60 days.
NACA's comments are endorsed by ACAA.
ATA, with IATA's endorsement, supports requiring carriers to
respond to consumer problems and cites the voluntary commitments to do
so that a number of carriers have long had in place. ATA states that
its members agree that consumers should receive responses to their
complaints within 30 days when practicable, provided that by
``response'' the Department means notification that a complaint has
been received and is being reviewed and that by ``complaint'' the
Department means a passenger's complaint that raises customer service
concerns and that is submitted to the carrier's customer relations
department. It contends, however, that resolving complaints in only 30
days is difficult if not impossible. ATA supports the idea of
designating an employee at a carrier's systems operations center to
monitor the effects of flight delays and cancellations, provided that
the designee is a current employee who carries out other
responsibilities as well. It does not support requiring such an
employee at each airport dispatch center, claiming that this would
duplicate existing procedures and would strain carriers' resources
without lessening the problems that consumers face. ATA supports
allowing each carrier to choose the means by which it receives
complaints and responds to them, and it supports requiring carriers to
post information on contacts for complaints on their Web sites. It
opposes requiring this information on e-tickets as redundant, if the
information is on the carriers' Web sites, and burdensome, as carriers
would have to change the printing format for e-tickets to accommodate
the new information. Thus, ATA argues, the benefit of including
complaint information on e-tickets would outweigh the cost,
particularly in the absence of any evidence that users of e-tickets are
experiencing any difficulty in finding this information at present.
RAA urges the Department to let carriers monitor the effects on
passengers of flight delays, flight cancellations, and lengthy tarmac
delays by whatever means they choose, given the wide variety of
circumstances among all carriers and between major and regional
carriers. It asserts that for its members, designating a single person
rather than making all employees responsible for taking passengers'
interests into account might be wasteful if not counterproductive given
how they may well have little if any control over decisions on delays,
diversions, and cancellations. As far as consumer complaints are
concerned, RAA asserts that the best means for giving contact
information may similarly vary among carriers and between major and
regional carriers. Tickets for RAA's members' code-share services are
typically sold and issued by their major-carrier partners, which often
staff the ticket counters and gates that consumers use as well. Under
these circumstances, RAA contends, its member carriers should not be
held responsible for telling consumers how to file complaints. RAA
states that when a major carrier receives a complaint that involves its
regional carrier partner, it coordinates with the latter to gather
facts so that it can respond to the consumer. Like ATA, RAA maintains
that 30 days is sufficient for acknowledging receipt of a complaint but
too little time for resolving one. Finally, RAA takes the position that
any requirements adopted should only apply to flights operated with
aircraft seating at least 30 passengers and not to flights operated
with smaller aircraft.
ACI-NA supports this proposal but did not specifically address it.
Of the travel agency associations, ASTA agrees in principle with
carriers' having an employee responsible for monitoring the effects of
schedule disruptions on passengers and having input in the decisions
made but doubts that this requires as many individuals as the proposal
contemplates given current communications technology. ASTA supports a
period of 30 days for responding substantively to consumer complaints.
It opposes allowing individual carriers to choose how complaints may be
filed, supporting instead a uniform requirement that complaints be
accepted by telephone, by U.S. mail, and by e-mail. ITSA did not
address this issue.
Proposed Rule: We have decided to propose a rule along the lines
set forth in the ANPRM, and again we invite comment from all interested
persons. Specifically, our proposed new rule, 14 CFR part 259, includes
a requirement
[[Page 74592]]
that every certificated and commuter air carrier that operates
scheduled domestic passenger service using any aircraft with a design
capacity of more than 30 passenger seats respond to consumer problems
concerning its scheduled flights in three ways. First, at its systems
operations center and at each airport dispatch center, the carrier
would have to designate an employee who monitors the effects of flight
delays, flight cancellations, and lengthy tarmac delays on passengers
and has input into decisions on which flights to cancel and which to
delay the longest. We anticipate that these responsibilities would be
borne by current employees in addition to their other responsibilities;
we do not intend for any carrier to have to hire new employees to
comply with this regulation. Second, on its Web site, on all e-ticket
confirmations, and, upon request, at each ticket counter and gate, the
carrier would have to inform consumers how to file a complaint by
providing the name, address, telephone number, and e-mail or Web-form
address of the appropriate person or office. Carriers would be given
180 days to modify their Web sites and reformat their e-tickets before
this requirement would take effect. Third, for each complaint filed,
the carrier would have to acknowledge receipt to the consumer within 30
days and provide a substantive response within 60 days of receiving it.
By ``substantive response,'' we mean a response that addresses the
specific problems about which the consumer has complained. We are not
proposing that this provision cover public charter operations.
Complaints about public charter flights are filed not with the carrier
but with the Public Charter Operator; also, the carriers operating
these flights may not have employees at each airport that they serve.
In adopting this approach, we are tentatively rejecting as
unrealistic CAPBOR's contention that we should require acknowledgement
of a complaint's receipt within 24 hours and a resolution of the
complaint within 30 days. The deadlines that we are proposing represent
standard practice in the industry and should allow carriers adequate
time to investigate and respond appropriately. We are addressing
carriers' opposition to hiring new employees to do work that is
redundant by clarifying that this is not our intent. We are tentatively
rejecting carriers' arguments that we should not make any particular
complaint channel mandatory, because we recognize that not all
consumers have access to the Internet. Some consumers traveling on e-
tickets purchased by a third party or by telephone may not have access
to the Internet themselves. We are tentatively rejecting ATA's
contention that requiring carriers to provide information on e-tickets
regarding how to complain is redundant and burdensome, because ATA has
not supported this contention. Under the proposed rule, an electronic
e-ticket confirmation or itinerary may include a link to the complaint
information in lieu of displaying the entire text. We invite ATA to
provide evidence on the costs to carriers of changing the format for e-
tickets to accommodate the new information in its comments on this
proposal. We are tentatively rejecting RAA's contention that its
members should not be required to tell consumers how to file
complaints. The rule by its terms would not require those regional
carriers that do not have Web sites or ticket counters or issue e-
tickets to provide information on filing complaints via these channels.
Passengers of these carriers who wish to complain should be able to
find out at the gate how to do so. RAA provides no basis for its
assertion that flights operated with aircraft seating fewer than 30
passengers should be exempt from this requirement.
3. Chronically Delayed Flights as Violations of 49 U.S.C. 41712
The ANPRM: This proposal would codify the Department's 2007
enforcement policy on chronically delayed flights. The proposed new
text would define a chronically delayed flight as a flight by a covered
carrier that is operated at least 45 times in a calendar quarter and
arrives more than 15 minutes late more than 70 percent of the time. It
would define a covered carrier as one that reports on-time performance
data to the Department under 14 CFR part 234--i.e., a certificated U.S.
carrier that accounts for at least one percent of domestic scheduled
passenger revenue. The text would state that the Department considers a
chronically delayed flight to be an unfair and deceptive practice and
an unfair method of competition within the meaning of 49 U.S.C. 41712
if it is not corrected before the end of the second calendar quarter
following the one in which it is first chronically delayed.
The Comments: CAPBOR supports this proposal but believes that
carriers should not be allowed a full six months to correct chronically
delayed flights and that the Department should automatically impose
civil penalties whenever a flight becomes chronically delayed in any
given quarter. CAPBOR also favors stricter standards than the ones that
we proposed: Specifically, that the rule should apply to flights
operated at least 24 times in a calendar quarter and that flights
should be deemed chronically late if they arrive at least 15 minutes
late more than 50 percent of the time. Ms. Hanni goes further and calls
for an even lower threshold of 40 percent. CAPBOR wants the Department
to make certain that carriers cannot evade the rule by changing the
number of a flight or changing its departure time by a few minutes. Ms.
Hanni adds that the Department should also address the problem of
chronically cancelled flights by regulation.
None of the individual commenters addressed this proposal. Of the
other consumer associations, ACAP concurs with CAPBOR, as do U.S. PIRG,
Public Citizen, and the National Consumers League. NBTA alone supports
the proposal as drafted.
Delta, the only carrier that commented individually on this issue,
takes the position that the Department should use the standard proposed
as a rebuttable presumption that a flight violates 49 U.S.C. 41712
rather than as a rule. In Delta's view, the Department must also
consider in each case whether the carrier has intended to deceive the
public or compete unfairly, because flights may fail to operate on time
for an extended period for many reasons that are beyond the carrier's
control. For example, if a flight performs erratically due to
unpredictable delays attributable to problems in the national air
traffic control system, the carrier cannot solve the problem by
extending the block time to make the flight operate on time more
consistently: This would make the flight arrive early when the system
functions properly, which in turn could cause disruptions and tarmac
delays at the destination airport. Another example would be a period of
harsh and unexpected weather arriving just when a carrier thought that
it had solved the problems that had made a flight late. Delta warns
that adopting a rigid standard for enforcement could result in
carriers' cancelling flights or arbitrarily retiming them
significantly, thus creating ``new'' flights, solely to avoid
enforcement action and even though they might otherwise have eventually
solved the scheduling problems. Delta warns that this approach is in
turn likely to cause passengers more inconvenience than would
continuing to try to address the real issues affecting a flight's
performance. In cases where the actual individual delays of a given
flight are relatively small--say 16 minutes, for example--passengers
fare better if the flight is maintained than if it is cancelled
altogether.
[[Page 74593]]
Delta opposes expanding the definition of a chronically delayed
flight to include international flights to and from the United States.
It claims that any carrier's ability to adjust the timing of such
flights is limited by time zone issues and consumers' preference to
arrive at foreign destinations at particular times. Additionally,
foreign laws and airport authorities may limit a carrier's ability to
adjust schedules or address other operational factors that affect on-
time performance.
In Delta's opinion, adopting the proposal as a rule would not
result in improvement of on-time performance, because carriers already
deem customer satisfaction to be critical to their success and are
therefore already doing whatever they can to meet their schedules.
Rather, Delta suggests, the government should use its resources to
improve the air traffic control system. The carrier concludes that in
any enforcement action, if a carrier can show that it has done all it
reasonably can to resolve the problem but that the underlying primary
cause is outside of its control, no sanction should be imposed.
Of the carrier associations that commented, ATA, with IATA's
endorsement, agrees with Delta that the proposed standard should only
be a rebuttable presumption and not a rule, because in some
circumstances a carrier may have legitimate reasons for not being able
to comply. ATA supports the proposed definition of a chronically
delayed flight and prefers it to the standard proposed by the
Department's Inspector General (IG), i.e., flights arriving 30 minutes
late 40 percent of the time. ATA opposes expanding the definition to
include international flights.
RAA does not oppose defining chronically delayed flights, but it
does oppose treating them as an unfair and deceptive practice subject
to enforcement action. RAA believes that the market will punish
carriers that fail to satisfy consumers and that the Department should
rely on market forces rather than enforcement. If the Department
persists nevertheless, RAA takes the position that the rule should
apply only to the carrier that sets the schedules and enters into
contracts of carriage with passengers when that carrier is not the
carrier operating the flights. In a similar vein, ACAA contends that
any rule on chronically delayed flights should apply only to the
largest carriers.
ACI-NA states that chronically delayed flights can harm both
airports and their local communities economically by causing passengers
to lose confidence in an airport's operations. A smaller airport can
sustain greater harm, according to ACI-NA, because even though larger
airports may have more delayed flights, delayed flights at a smaller
airport may constitute a larger percentage of that airport's flights.
Also, delays at small airports whose flights feed a large carrier's hub
are more disruptive to passengers, because they cause more missed
connections. Regarding the proposal, ACI-NA maintains that a threshold
of 45 flight operations per calendar quarter, or approximately four
flights per week, will improperly exclude operations at many small
airports and thus fail to protect their passengers. Instead, ACI-NA
proposes a threshold of 12 flight operations per calendar quarter, or
one flight per week. ACI-NA also maintains that a late-arrival
threshold of more than 70 percent is too lenient to carriers and unfair
to consumers, and it proposes a threshold of 50 percent. Finally, ACI-
NA maintains that any rule should apply not only to the major and
national carriers that account for at least one percent of domestic
scheduled passenger revenue but also to the operations of regional or
feeder carriers that are affiliated with the larger carriers. ACI-NA
reasons that delays harm passengers just as much regardless of which
certificate holder operates the aircraft. Furthermore, with regional
carriers now transporting one of every four domestic passengers,
operating half of daily domestic flights, and providing the only
scheduled service to about 70 percent of U.S. airports, ACI-NA deems it
critical that their operations be covered by the rule.
Of the travel agency associations, ASTA supports defining
chronically delayed flights as an unfair and deceptive practice but
suggests that the proposal can be improved in a number of ways. First,
the threshold should be set at 50 percent rather than 70 percent, which
will be a stronger incentive for airlines to adjust their schedules or
operations. Second, rather than permitting a carrier two calendar
quarters to correct a chronically delayed flight, correction should be
required within the first calendar quarter following the one in which
the flight became chronically delayed: ASTA maintains that three months
should usually suffice, and in cases where a carrier can show why it
should be granted additional time, the Department would have the
discretion to accommodate it. Third, ASTA supports applying this rule
to international scheduled passenger service by both U.S. and foreign
carriers. ITSA did not address this issue.
Proposed Rule: With some modification to the details, we have
decided to propose a rule along the lines set forth in the ANPRM, and
we invite comments from all interested persons. Specifically, we
propose to amend 14 CFR 399.81 to define chronically delayed flights
and to specify that the Department considers flights that continue to
be chronically delayed for three consecutive calendar quarters to be an
unfair and deceptive practice and an unfair method of competition
within the meaning of 49 U.S.C. 41712 and subject to enforcement
action. This proposal defines a flight as chronically delayed if it is
operated at least 30 times in a calendar quarter and arrives more than
15 minutes late more than 70 percent of the time. As far as substitute
flights are concerned, all flights in a given city-pair market whose
scheduled departure times are within 30 minutes of the most frequently
occurring scheduled departure time would be considered to be one single
flight for purposes of assessing chronic delays. The revised proposal
reflects the Department's 2008 enforcement policy, and we tentatively
believe that it strikes the appropriate balance between consumers' need
to have reliable information about the real arrival time of a flight
and the carriers' inability to control or predict the weather and
certain other factors that can contribute to delays. In addition, for
the reasons set forth below in support of our decision not to propose a
rule requiring on-time reporting of international flights, we have also
decided against proposing to include foreign air transportation--i.e.,
international flights--in the definition of a chronically delayed
flight.
We further invite interested persons to comment on an alternate
definition of a chronically late flight as one that is operated at
least 30 times in a calendar quarter and that arrives at least 30
minutes late at least 60 percent of the time. While this latter
approach could theoretically yield more benefits for consumers, we are
concerned that adopting this more stringent standard could lead to a
large number of flight cancellations and possibly even the elimination
of service to some communities. Also, we invite comment on whether we
should adopt an even stricter definition favored by the Department's
Inspector General: A flight that is cancelled or delayed 30 minutes or
more at least 40 percent of the time. The Inspector General calculated
in 2006 that using this definition would yield 5,369 chronically
delayed flights, a very high number (Follow-Up Review:
[[Page 74594]]
Performance of U.S. Airlines in Implementing Selected Provisions of the
Airline Customer Service Commitment, Report Number AV-2007-012, Issued
November 21, 2006, at page 5, footnote 8, and Attachment, page 17).
Because we are concerned that any consequential increase in enforcement
responsibilities might require the diversion of resources from other
aviation compliance activities, commenters should assess both the
benefits that this definition would engender and the costs that it
would entail. Of course, regardless of which definition we adopt, we
always have the authority to take enforcement action against flights
that do not meet the definition but that appear to involve unrealistic
scheduling and thus to constitute unfair and deceptive practices and
unfair methods of competition within the meaning of 49 U.S.C. 41712.
For enforcement purposes, we are considering the option of not
treating a flight that remains chronically delayed for three
consecutive quarters as an unfair and deceptive practice and an unfair
method of competition if every prospective passenger using any
available channel of purchase is informed before buying a seat on that
flight that the flight is chronically delayed. There is no deception or
unfairness if a consumer who knows that a flight is chronically delayed
chooses it for travel nonetheless. We invite comment on this approach.
We are tentatively rejecting as too draconian the consumers'
contentions that we should not allow a full six months for the
correction of a chronically delayed flight, that we should
automatically impose civil penalties in the calendar quarter when a
flight becomes chronically delayed, and that we should define
chronically delayed flights more broadly. As we have stated above, our
aim in proposing rules is to strike a balance between a passenger's
need to have the best possible information about the real arrival time
of a flight and the carriers' inability to control--or foresee--the
weather and various other factors that can cause delays. As for
chronically cancelled flights, the proposed rule would treat each
flight that is cancelled within seven days of departure as a delayed
flight for purposes of our analysis, but we decline at this time to
consider regulating chronically cancelled flights in other respects. We
are addressing consumers' concerns that carriers could evade the rule
by changing a flight's number or departure time by providing for the
treatment of substitute flights as the same flight.
We are also tentatively rejecting the carriers' contention that we
should use the standard we adopt as a rebuttable presumption and not a
rule. Chronic delays are a serious problem that must be addressed, and
we consider the standard we are proposi