Aviation Consumer Protection Rule Forum July 7/8 and 21/22, 2011

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

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

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 (b) and (c) and 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 (b) and (c) and

 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.

 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.

 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

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

 Current Rule: Applies at Large and Medium hub airports  Amended Rule: Expands applicability to include Small and Non-hub airports  Note: FAA website ssenger/media/cy09_cs_enplanements.pdf ssenger/media/cy09_cs_enplanements.pdf

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

 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

 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

 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

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)

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

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

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 )

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.

 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

 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

 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

 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

 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

 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

 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

 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.

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.

 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

 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

 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;

 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;

 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.

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

 Flight Status Change Notification (addressed more specifically in 14 CFR 259.8)

 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)

 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

 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: 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.

 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.

 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

 Note: More provisions address ticket refunds ◦ Cash and Check = 20 days after receiving a complete refund request ◦ Credit Card =  14 CFR  12 CFR part 226

 As required by 14 CFR Part 382, the Air Carrier Access Act, and... ...As set forth by the carrier’s policies and procedures

 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

 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

 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 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  As described in each carrier’s policies and procedures for determining boarding priority

 Carriers must notify consumers in a timely manner of changes in their travel itineraries

 Required by 14 CFR  Already applicable to U.S. carriers, but extended to include foreign carriers

 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

 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.

 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

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.)

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?

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

 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

 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.

 What: Carriers must use a number of means to inform consumers how to file a complaint  How: By providing a mailing address and or web address of the department or office in the airline with which to file a complaint about its scheduled service

 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

 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

 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.

 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”

 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.

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

 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

 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 or website location for filing written complaints