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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."
Posted Dec 22, 2009
In what is being heralded as a "Christmas Miracle" by some air travel watchdog groups, the DOT announced new fines for airlines that keep passengers on board an aircraft for longer than 3 hours after departure from the gate. While we are not advocating that passengers should be kept on aircraft for long periods of time and deprived of basic necessities, we do worry that this arbitrary time limit will have a huge (and negative) effect on how airlines operate during periods of bad weather.
Posted Jan 22, 2009
Former Illinois congressman Ray LaHood, President Barack Obama's Department of Transportation Secretary-designate, yesterday faced the Senate Committee on Commerce, Science & Transportation. Published reports suggested the nomination hearing was closer to a lovefest than a grilling. The New York Times wrote that LaHood "was effectively approved by acclamation." Click here to read a few of the prepared statements and watch a video of the committee hearing. The full Senate is expected to soon make his appointment official.
Posted Sept 18, 2008
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