Final Rule for Enhancing Airline Passenger Protections II Aviation Consumer Protection Rule Forum July 7/8 and 21/22, 2011

Summary of the Final Rule’s Provisions The Rule Covers the Following Topics: Tarmac Delay Contingency Plans Tarmac Delay Data Customer Service Plans Posting of Customer Service and Tarmac Delay Contingency Plans Response to Consumer Problems

provisions (continued) Oversales Full Fare Advertising Baggage and Other Fees Post-Purchase Price Increases Flight Status Changes Choice-of-Forum Provisions

Enhancing Airline Passenger Protections II: Overview EAPP #2: Final Rule was published in Federal Register on April 25, 2011 Effective Dates: August 23, 2011: all provisions on tarmac delays, response to consumer problems, oversales, choice-of-forum provisions, and web posting of certain documents all provisions on Customer Service Plans except for flight status notification and holding a reservation for 24 hours [14 CFR 259.5(b)(2) and (4)] all provisions on baggage except for 399.85(b) and (c) and 399.87 January 24, 2012: all provisions on advertising, price increases, flight status notifications, and holding a reservation for 24 hours, as well as the baggage provisions in 399.85(b) and (c) and 399.87

Enhanced Protections for Airline Passengers (14 CFR 259 Enhanced Protections for Airline Passengers (14 CFR 259.2): Applicability Current Rule: Applies to covered U.S. carriers operating passenger service (scheduled or public charter) using any aircraft with a design capacity of 30 or more passenger seats. (Not all provisions apply to charters.) New Rule: Expands the rule to include foreign carriers that operate to and from the U.S.

Applicability (cont.) Applies to all aircraft of covered carriers, including those with fewer than 30 seats Not Applicable: Foreign air carrier charters that operate to and from the U.S. and that do not pick up new passengers in the U.S.

Contingency Plans for Lengthy Tarmac Delays (14 CFR 259.4) Who: U.S. and foreign air carriers must adopt a contingency plan for Lengthy Tarmac Delays for their scheduled and public charter flights Where: At each large, medium, small, and non-hub airport at which the air carrier operates or markets its service

Contingency Plan (cont.) Note: The requirement to adopt and follow a plan applies only to tarmac delay events that occur at a covered U.S. Airport

Contingency Plans: Applicable Airports Current Rule: Applies at Large and Medium hub airports Amended Rule: Expands applicability to include Small and Non-hub airports Note: FAA website http://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/pa ssenger/media/cy09_cs_enplanements.pdf

Contingency Plans: Allowable Time on Tarmac (domestic)  The plan must contain an assurance that for: Domestic flights: U.S. carrier will not permit an aircraft to remain on the tarmac... ...more than three hours before allowing passengers to deplane

Contingency Plans: Allowable Time on Tarmac (international) International flights: departing from or arriving at a U.S. airport U.S. or foreign carrier will not permit an aircraft to remain on the tarmac for... ...more than four hours before allowing passengers to deplane

Time Limits (cont.) When does the “clock” begin for determining the length of a tarmac delay? When the door to the aircraft is closed or passengers are no longer allowed to deplane

Contingency Plans: Exceptions to the requirement to deplane passengers The exceptions apply to ALL covered flights They include: 1) Safety or security related reason why the aircraft cannot leave the tarmac to deplane passengers (as determined by pilot-in-command) or 2) ATC advises that returning to gate or another disembarkation point in order to deplane passengers would significantly disrupt airport operations We will have a representative from FAA on a later panel who will discuss this more fully

Contingency Plans: Assurances Covered carriers will provide: Adequate food and potable water no later than: Two hours after the aircraft leaves the gate (departure delay) or touches down if the aircraft remains on the tarmac (arrival delay) Adequate food can be a granola bar or a similar snack

Contingency Plans: Assurances operable lavatory facilities, as well as adequate medical attention if needed, while the aircraft remains on the tarmac sufficient resources to carry out the plan

Contingency Plans: Coordination Carriers must coordinate plans with: Airport authorities, including terminal facility operators (where applicable) Customs and Border Protection (CBP) Transportation Security Administration (TSA) Regular diversion airports Our government panel will also include representatives from CBP and TSA who will be here to address coordination with their respective agencies

Contingency Plans: Notification Carriers must notify passengers: Regarding status of delay every 30 minutes while aircraft is delayed, including reasons for delay (if known) Of the opportunity to deplane from an aircraft at the gate or another disembarkation area... ...beginning 30 minutes after scheduled departure time and every 30 minutes thereafter (if opportunity actually exists)

Notification (cont.) Note: Carriers are not required to re-board a passenger who chooses to deplane and may miss a flight. We encourage airlines to announce to passengers that they are deplaning at their own risk and the flight could depart without them.

Contingency Plans: Code-Share Responsibility Carrier under whose code the service is marketed governs (if different from the operating carrier)... ...UNLESS, marketing carrier specifies in its contract of carriage that the operating carrier’s plan governs

Contingency Plans: Record Retention Covered carriers must retain for at least two years information about any on-ground delay that lasts at least three hours. The records must include information about: (1) the length of the delay; (2) the cause of the delay; (3) the steps taken to minimize hardships for passengers; (4) whether the flight ultimately took off or returned to the gate; and (5) an explanation for the tarmac delay

Record Retention (cont.) Question: in the case of an international flight, why did the Department determine that data should be collected for tarmac delays lasting more than three hours (rather than four hours)? Answer: In order to collect consistent data for domestic and international flights To get a better feel for international tarmac delays

Contingency Plans: Unfair and Deceptive Practice Failure to comply with the assurances required by the rule AND Contained in a carrier’s Contingency Plan for Lengthy Tarmac Delays = Unfair and Deceptive Practice and is subject to enforcement action

Posting Tarmac Delay Plan and Contract of Carriage on Websites (14 CFR 259.6): Applicability Old Rule: U.S. certificated or commuter air carriers operating at least one aircraft with 30 or more seats Expanded to Include: Foreign air carriers operating to or from the U.S. Scheduled passenger service or public charter service

Posting Tarmac Delay Plans and Contract of Carriage on Websites: Requirements U.S. air carrier with a website and... Foreign air carrier that has a website marketed to U.S. consumers and... Is required to adopt a contingency plan for lengthy tarmac delays... ...MUST post the plans on its website. A covered carrier must also post its current contract of carriage on its website

Record Retention vs. Tarmac Delay Reporting 14 CFR Part 259 requires that covered carriers retain certain information for two years 14 CFR Part 244 requires that covered carriers report tarmac delay data to the Bureau of Transportation Statistics My colleague, Clereece, along with representatives from the Bureau of Transportation Statistics will address tarmac delay reporting in the next session

Customer Service Plans (14 CFR 259.5) Old Rule: Requires covered U.S. air carriers to adopt, follow and audit customer service plans for their scheduled flights New Rule: Expands rule to covered foreign air carriers for their scheduled passenger service to and from the U.S.

Customer Service Plan: Audit The rule requires each covered U.S. and foreign carrier to: audit its own adherence to its plan annually and... make the results of its audit available for the Department’s review upon request for two years following the date any audit is completed.

CSP Audit: Format The Department does not dictate the audit’s format We encourage carriers to use the audit as a means to review their compliance with the rule’s provisions

Customer Service Plans: Minimum Standards The rule sets forth content for the subjects that covered U.S. and Foreign Air Carriers must address in Customer Service Plans New Rule: Also sets minimum standards for each subject

Customer Service Plans: Subjects that Must be Addressed in Plan offering the lowest fare available; notifying consumers of known delays, cancellations, and diversions; delivering baggage on time; allowing reservations to be held or cancelled for 24 hours;

Customer Service Plans: subjects (cont.) providing prompt ticket refunds; properly accommodating disabled and special-needs passengers, including during tarmac delays; meeting customers’ essential needs during long on-aircraft delays; handling “bumped” passengers with fairness and consistency in the case of oversales;

Customer Service Plans: subjects (cont.) disclosing cancellation policies, frequent flyer rules, lavatory availability and aircraft configuration; Notifying consumers in a timely manner of changes in their travel itineraries; ensuring responsiveness to customer complaints; and identifying the services it provides to mitigate passenger inconveniences resulting from cancellations and misconnects.

Lowest Fare Available Carrier Must Disclose that a lower fare may be available elsewhere (if that is the case): On the carrier’s website At the ticket counter When a customer calls the carrier’s reservation center to inquire about a fare or to make a reservation

Notifying consumers of known delays, cancellations, and diversions Flight Status Change Notification (addressed more specifically in 14 CFR 259.8) This subject will be addressed more fully in a later session

Timely Delivery of Baggage (cont.) Make reasonable effort to return mishandled baggage w/in 24 hours Compensate passengers for reasonable expenses that result due to delay in delivery Domestic Flights: 14 CFR part 254 International Flights: Applicable Int’l Agreement (e.g., Montreal or Warsaw)

Baggage (cont.) Reimburse passengers for any fee charged to transport a bag if that bag is lost Note: This provision applies to lost, not delayed bags If the bag is delivered, the service has been provided

Hold Reservations Allow reservations to be held at the quoted fare without payment or cancelled without penalty... ...For (at least) 24 hours after the reservation is made Only applies to reservations made one week or more prior to a flight’s departure

Question and Answer: Holding Reservations Question: Does a carrier have to do both: hold the reservation at the quoted fare and allow a passenger to cancel a reservation in 24 hours without penalty? Answer: No, a carrier can choose which method it would like to follow.

Holding Reservations (cont.) Questions: Are carriers required to meet this provision with regard to third-party bookings? Answer: No, the rule does not require reservations to be held by ticket agents on behalf of a carrier.

Ticket Refunds Provide prompt refunds (where due) Note: must refund fees charged for optional services that the passenger was unable to use due to an oversales situation or flight cancellation E.g. Passenger paid to upgrade her seat to economy plus and that seat does not exist on the aircraft she travels on

Providing Prompt Ticket Refunds Note: More provisions address ticket refunds Cash and Check = 20 days after receiving a complete refund request Credit Card = 14 CFR 374.3 12 CFR part 226

As required by 14 CFR Part 382, the Air Carrier Access Act, and... Properly accommodating disabled and special-needs passengers, including during tarmac delays As required by 14 CFR Part 382, the Air Carrier Access Act, and... ...As set forth by the carrier’s policies and procedures

Meeting customers’ essential needs during lengthy tarmac delays As required by 14 CFR 259.4, the Department’s requirements for contingency plan for lengthy tarmac delays and As provided for in each covered carrier’s contingency plan

Disclosing Information on the Selling Carrier’s Website On selling carrier’s website and, upon request, from selling carrier’s telephone reservations staff Must Disclose Cancellation policies Frequent flyer rules Aircraft seating configuration Lavatory availability

Question and Answers: Disclosure Q: Must a carrier disclose cancellation policies, frequent flyer rules, lavatory availability and aircraft configuration information on its own website for its code-share partners? A: No, the customer service plan requirements in section 259.5 apply only to the scheduled flights operated by a given carrier and not the flights operated by its code-share partners.   

As required by 14 CFR Part 250 And Handling “bumped” passengers with fairness and consistency in the case of oversales As required by 14 CFR Part 250 And As described in each carrier’s policies and procedures for determining boarding priority The oversales provisions have been amended and will be more fully discussed by my colleagues, Tim and Clereece, in tomorrow’s session.

Changes in Travel Itinerary Carriers must notify consumers in a timely manner of changes in their travel itineraries

Ensuring responsiveness to customer problems Required by 14 CFR 259.7 Already applicable to U.S. carriers, but extended to include foreign carriers I will discuss this provision more fully later today.

Mitigating Passenger Inconvenience A carrier must identify the services it provides to mitigate passenger inconveniences resulting from cancellations and misconnects Examples of these services may include: Meals Phone calls Hotel Rerouting on a later flight

Posting Customer Service Plans on Websites(14 CFR 259 Posting Customer Service Plans on Websites(14 CFR 259.6): Applicability Current Rule: U.S. certificated or commuter air carriers operating at least one aircraft with 30 or more seats Expanded to Include: Foreign air carriers operating flights to or from the U.S.

Posting Customer Service Plans on Websites: Applicability U.S. air carrier with a website and Foreign air carrier that has a website marketed to U.S. consumers and Is required to adopt a customer service plan

Customer Service Plans: Foreign Carriers websites and reservation systems Note: Customer service plan requirements for foreign carriers’ websites and reservation centers are applicable to service marketed to U.S. consumers (e.g. website is in English, website is targeted to U.S. consumers, tickets sold in dollars, flights to/from the U.S.)

Response to Consumer Problems The rule requires covered U.S. and foreign air carriers to: Designate an employee to monitor the effects of irregular flights on consumers Inform consumers how to complain Respond to complaints What have you done for me lately?

Response to Consumer Problems: Designate Employee Covered U.S. and foreign air carriers must: Designate for its scheduled flights an employee to monitor the effects of flight delays, flight cancellations, and lengthy tarmac delays on passengers The employee must have input into decisions on which flights to cancel and which to delay the longest

Designate Employee (cont.) The employee does not need to be located in the United States The carrier does not need to hire a new employee to perform this task

Designate Employee (cont.) Note: The requirement is intended to ensure that passenger interests are considered by carriers when decisions on irregular flight operations are made. The rule does NOT require that the designated employee be made available to speak with airport personnel or passengers.

Response to Consumer Problems: Inform Consumers How to Complain What: Carriers must use a number of means to inform consumers how to file a complaint How: By providing a mailing address and e-mail or web address of the department or office in the airline with which to file a complaint about its scheduled service

Inform Consumers (cont.) Where: On their website (if any), on all e-ticket confirmations, and upon request, at each ticket counter and boarding gate staffed by the carrier or a contractor of the carrier

Response to Consumer Problems: Respond to Complaints 30 days to acknowledge in writing the receipt of a complaint from a consumer regarding its scheduled service 60 days from receipt of complaint to provide a substantive response

Respond to Complaints (cont.) Note: It may not be possible in all instances to provide a final reply to a passenger within 60 days A carrier can provide a substantive response within 60 days, continue its investigation, and provide a final reply later.

Respond to Complaints: definitions We have defined a complaint as: “A specific written expression of dissatisfaction concerning a difficulty or problem which the person experienced when using or attempting to use an airline’s services”

Response to Complaints: definitions What is “Attempting to Use an Airline’s Services”? Example: A consumer has a problem while attempting to book or cancel a flight on the carrier’s website.

Response to Complaints: definitions We define a “substantive response” to be: “a response that addresses the specific problems about which the consumer has complained.”

Filing Complaints on Social Networking Sites Such as Facebook or Twitter Carriers NOT required to accept complaints on that site, IF The site is not meant to be a means to accept written consumer complaints

Social Networking Sites (cont.) BUT carrier must clearly state on primary page of the social networking site: It will not reply to consumer complaints on that site and Gives carrier’s mailing address and e-mail or website location for filing written complaints