Final Rule for Enhancing Airline Passenger Protections II

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

2. 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

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

4. 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

5. 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.

6. 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.

7. 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

8. 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

9. 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/passenger/media/cy09_cs_enplanements.pdf

10. 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

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

12. 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

13. 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

14. 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)

15. 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

16. 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

17. 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)

18. 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.

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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.

27. 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.

28. 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

29. 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

30. 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;

31. 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;

32. 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.

33. 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

34. Notifying consumers of known delays, cancellations, and diversions • Flight Status Change Notification (addressed more specifically in 14 CFR 259.8)

35. 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)

36. 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

37. 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

38. 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.

39. 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.

40. 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

41. 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

42. 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

43. 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

44. 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

45. 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. 

46. 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

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

48. Ensuring responsiveness to customer problems • Required by 14 CFR 259.7 • Already applicable to U.S. carriers, but extended to include foreign carriers

49. 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

50. 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.