New Measures to Improve Air Travel Experience

U.S. Transportation Secretary Mary E. Peters Announces New Aviation Measures
to Strengthen Passenger Protections, Improve Consumer Choice and Reduce Congestion

The Secretary announced new changes to the Department’s bumping rule, which requires airlines to double the cap on compensation to passengers who are involuntarily bumped from their flight. 

1. Under the new rule which goes into effect next month, fliers who are involuntarily bumped would receive up to $400 if they are rescheduled to reach their destination within two hours of their original arrival time (four hours for an international flight), and up to $800 if they are not rerouted within that timeframe.
2. The new rule also expands the compensation to cover more flights, including those operated with aircraft seating 30 people or more; the current rule covers flights with more than 60 seats.  These payments are in addition to the value of the passenger’s ticket, which the flyer can use for alternate transportation or have refunded if not used.

The Secretary also announced new air traffic measures designed to help cut delays this summer.

1. The first measure involves new and greater flexibility for aircraft to use alternative routes in the sky to avoid severe weather.  This includes a new routing alternative that provides an “escape route” into Canadian airspace from the New York region so airlines can fly around summer thunderstorms and high winds.
2. The FAA will open a second westbound route for aircraft, akin to adding another interstate highway lane in the sky.  This would in effect provide a parallel route along a heavily-traveled aviation corridor, helping cut westbound delays from the New York area.

The Secretary also announced a proposal for a new way to manage congestion at New York’s LaGuardia Airport.  Even though the facility has been capped since 1968, it is still consistently one of the top three most delayed airports in the nation. The proposal increases choices for passengers and adds competition, which are proven to lower fares.  It also cuts delays and funds new aviation capacity projects for the region.

1. Under the supplemental rulemaking announced today, the Department is proposing two market-based options that would require a limited number of flights operated by the airlines in a given day, known as slots, to be made available through an auction process.
2. Under the first option, all air carriers would be given up to 20 slots a day for the 10 year life of the rule.  Meanwhile, over the next five years, 8 percent of the additional slots currently used by an airline would be available to any carrier via an auction.  An additional 2 percent of the slots would be retired to help cut the record delays at the airport. Under this proposal, proceeds from the auction would be invested in new congestion and capacity initiatives in the New York region.
3. The second option also gives airlines access to up to 20 slots a day for a 10 year period.  Beyond those flights, 20 percent of the slots currently used by the airlines would be made available over the next five years to all airlines through an auction. Under this option, the carriers would retain the net proceeds of the auction.

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Last updated: 4/16/2008