Air passengers in America will soon be eligible for double the current compensation rate from airlines if they are ”bumped” off overbooked flights.
From next month, customers involuntarily switched to a later service will receive up to $400 (”200) if they consequently reach their destination within 2hrs of the original arrival time (or 4hrs on international routes) and up to $800 if it is any later than that.
This rule also encompasses smaller aircraft and business jets seating just 30 people or more ” currently only 60-seaters and up are covered.
”It”s hard to compensate for a missed family occasion or business opportunity, but this rule will ensure flyers are more fairly reimbursed for their inconvenience,” said Transportation Secretary Mary E Peters.
Exact reimbursement figures will be determined by the price of a passenger”s ticket as well as the length of the delay, and are in addition to the value of the ticket which can be refunded if not used.
In order to help cut delays this summer the Department of Transportation (DOT) also announced new air traffic measures, with aircraft now being allowed to re-route around bad weather through Canadian airspace.
More contentious, however, is its proposal to auction some slots at New York”s heavily congested LaGuardia Airport.
It would give all carriers up to 20 slots a day for ten years, but during the first five of those any airline with more than that would have to put between 8% and 20% of its additional ones up for auction.
America”s Air Transport Association (ATA) ” representing leading US airlines - reacted furiously.
”It is truly mystifying, with the airline industry in a financial meltdown due to overwhelming fuel prices, that DOT decides now is the time for a costly economics experiment at LaGuardia,” said ATA president and CEO James C. May. ”It is even more ridiculous considering the DOT”s highly suspect claim of legal authority it has just ”discovered” after decades of concluding the opposite.
”The solution to delays in New York is not figuring out how to charge airlines and their passengers more, but rather getting on with modernising the antiquated air traffic control system. This proposal means fewer choices, higher costs and a reduction in service to smaller communities.”
Secretary Peters sees it differently though: ”This proposal increases choices for passengers and adds competition, which is proven to lower fares. It also cuts delays and funds new aviation capacity projects for the region.
”Our plan strikes a sound balance between protecting investments by incumbent carriers and ensuring that all airlines have the ability to fly to New York”s LaGuardia.”