Proposal outlines more airline consumer protections

WASHINGTON - Airline passengers would receive as much as $1,300for being bumped from a flight and would have 24 hours to cancelreservations without penalty, among other consumer protectionsproposed Wednesday by the Obama administration.

Currently, airlines must pay up to $800 for involuntary bumpingof passengers.

The new rules, which will likely go into effect later this year,would also require airlines to fully and prominently disclosebaggage fees as well as refunds and expense reimbursement when bagsare not delivered on time, provide special notice any time baggagefees are increased, and notify passengers buying tickets whetherthey must pay to check up to two bags.

Price increases after a ticket is purchased would also beprohibited under the proposal. Airlines would also have to givepassengers timely notice of flight status changes.

The proposal would extend to foreign airlines a three-hour limiton the time airlines can keep passengers waiting on airport tarmacs.The three-hour limit went into effect for U.S. carriers in April.

Currently, airlines may limit compensation to $400 forinvoluntary bumping of passengers if the carrier arranges substitutetransportation scheduled to arrive at the passenger's destinationone to two hours after the passenger's original scheduled arrivalfor domestic flights, or one to four hours for internationalflights.

They limit compensation to $800 if the substitute transportationis scheduled to arrive more than two hours later for domesticflights, or more than four hours later for international flights.

The proposed rule would increase the limits to $650 and $1,300,respectively, and adjust those limits every two years inflationevery two years.

"This administration believes consumers are entitled to strongand effective protections when they fly," Transportation SecretaryRay LaHood said.

While acknowledging the financially troubled condition of theairline industry, LaHood said he believes airlines can factor thenew rules into their schedules with causing disruptions in service.

James May, president of the Air Transport Association, whichrepresents major carriers, said airlines would evaluate theproposals "with a focus on minimizing potential passengerinconvenience."

Bumpings due to overbooking are becoming a more frequentoccurrence. They rose in three of the past four years and jumped 10percent to 762,422 in 2009, the highest total since 2002. Theysoared 17 percent in this year's first quarter.

Airlines are required to first ask for volunteers beforeinvoluntarily bumping ticket holders. They can reward volunteerswith travel vouchers, but people forced off flights must be paid incash or check. Critics say airlines often flout that rule. TheTransportation Department recently fined Southwest Airlines $200,000for that and other shortcomings in its bumping practices.

When the government first regulated bumping three decades ago,passenger no shows were far more common. Today, with most airlinetickets are deeply discounted and nonrefundable, no shows are muchless of a problem. Planes are also more likely to be full due tocutbacks in airline schedules over the past two years. That meanspassengers who are denied boarding because a flight is overbookedoften have a harder time finding a seat on another flight.

Interested parties have up to 60 days to submit comments to theTransportation Department. LaHood estimated DOT will finalize thenew rules some time this fall.