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Posted Sept 6, 2011
This perspective piece by University of Michigan associate professor Amy Cohn was originally published in the Aug. 22, 2011, issue of Business Travel News .
In April 2010, the U.S. Department of Transportation instituted the three-hour tarmac delay rule, which allows for fines of up to $27,500 per passenger whenever an airline keeps a plane on the tarmac for more than three hours without giving passengers the option to deplane. More than a year later, what can we say about the impact of this hotly debated rule?
Posted Apr 22, 2011
The Department of Transportation is delaying any decision to force airlines to utilize the GDS-mandated methodology for selling and displaying ancillary services. They are delaying their decision because they "lack additional information about costs, benefits and consequences" of requiring carriers to provide that information to the GDSs. It's easy to understand why DOT has more questions than answers. We can just look at some of the recent comments by industry brass. Airlines now support a standardized XML for their direct connect whereby the airline can, in a fully transparent way, offer its best and most relevant product. What is standing in the way of the GDS simply connecting to those airlines? The GDS clearly express it is not a technology or "XML" issue, as recently stated by a Sabre official in The Beat.
Posted Mar 3, 2011
Allegiant Air is considering raising fares on customers even after they purchase tickets, and a new industry group doesn’t like it.
The carrier last month disclosed the pricing concept in a letter to the U.S. Department of Transportation, which is considering a blanket ban on post-purchase air ticket price hikes. That ban could be part of a set of proposed DOT rules meant to enhance airline passenger protections. Those regulations are expected to be finalized next month.
Posted Oct 28, 2010
The U.S. Department of Transportation announced today that 54 high-speed rail projects in 23 states would "share in $2.4 billion to continue developing America's first nationwide program of high-speed intercity passenger rail service." DOT allocated much of the money to California and Florida, $901 million and $800 million, respectively.
Posted Oct 6, 2010
Regarding "Airlines Slam DOT Proposal Requiring Fee Disclosures In GDSs" published last week in The Beat , Pass Consulting's Michael Strauss writes ...
Posted Jul 14, 2010
With the full set of statistics about May now released, people have been doing some analysis on whether the tarmac delay rule that took effect on April 29 had an impact on cancellations. The DOT is happy to promote that the number of 3 hours+ tarmac delays in May was 5, a major reduction from the 34 on 2009. So clearly it worked, right?
No so fast, points out Brett Snyder in the Cranky Flier column. Cancellations are also way up, so that means many people people were inconvenienced to reduce the tarmac delays. So clearly it didn't work, right?
Posted Jul 11, 2010
I've repeatedly said that I don't agree with the DOT's micro-management of the airline industry through it's new list of proposed rules (My blog posts on the first round of rules here, and on the new rules here). But recently, a few things have come across my desk that I think might actually be ripe for DOT rule-making (or at least a little DOT reprimand).
Posted Mar 23, 2010
If Jeff Smisek, Continental Airline’s CEO, was a gambler, he probably wouldn’t play roulette. Why not? The odds are stacked too far in favor of the house.
Mr. Smisek’s risk tolerances came to light at an investors’ conference earlier this month. He made it clear how Continental would handle the risk of being fined up to $27,500 per passenger for excessive tarmac delays.
Posted Jan 8, 2010
The AP is reporting (even before Virgin America has put out a press release themselves) that the DOT has ruled that VA is, in fact, controlled by U.S. interests. Per U.S. law, foreign entities are limited to 25 percent of the voting rights of any U.S. carrier. (Heaven forbid that Singapore Airlines bought a good chunk of United and actually tried to bring it up to SQ's level!)
Posted Jan 4, 2010
In examining a oneworld alliance antitrust immunity application highlighted by a proposed American Airlines/British Airways/Iberia joint venture, the U.S. Department of Transportation on Dec. 22 "established a supplemental comment period--through January 11" for interested parties "to respond to late-filed pleadings." One such late filing, submitted by the U.S. Department of Justice, argued that the proposed agreements "would result in competitive harm on certain transatlantic routes serving 2.5 million passengers annually" and increase fares "up to 15 percent."
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