Air Passenger Rights in the U.S.

From SmarterTravel

Air travelers in the U.S. who have suffered some form of inconvenience or hassle often ask, “What are my rights as an airline passenger?” Such travelers have a variety of rights: a few apply specifically and exclusively to air travel; other more general rights have a special significance in air travel.

Air Travel Special Rights

If travelers limit their view of “rights” to those specifically ordained for air travel, the answer is “very few."

Bumping Compensation

The most important right specific to air travel is mandatory compensation for travelers who are “bumped” from their flights--those with confirmed reservations and valid tickets, who arrive at the gate as required, but are not allowed to board because the flight is overbooked. In those instances, the Department of Transportation (DOT) has established specific compensation guidelines. compensation guidelines.

As recently updated and increased, the compensation calls for:

• Payment of the value of the ticket, up to $400, if the airline reschedules a traveler to arrive at his or her destination within two hours of the original schedule (four hours for an international flight)
• Payment of the value of the ticket, up to $800, if the delay those limits.
• Retention and re-use or refund of the original ticket.

The new overbooking rule went into effect last May. It now applies to scheduled flights in planes carrying 30 or more passengers, down from the previous minimum of 60 passengers. That change means the requirement now covers all regional jets and almost all regional turboprops--important because regional airlines typically bump a higher percentage of travelers than the larger lines do.

Mandated compensation applies only to involuntary bumping.

Historically, when airlines overbook their flights, they are able to entice 9 out of 10 overbooked travelers to give up their seats voluntarily in exchange for some sort of incentive--a voucher for future travel, an upgrade, frequent flyer miles, and such.

This right has been so widely publicized that many travelers seem to believe it applies any time they aren’t able to board a scheduled flight. That’s not the case. This compensation applies only to travelers bumped because of overbooking. Unfortunately, airlines can fail to board travelers for a number of other reasons, none of which falls under the bumping rule.

Honest Fare Advertising

Federal law gives DOT sole jurisdiction over regulations dealing with airline fares and routes--a jurisdiction that includes airline advertising. DOT enforces two basic advertising principles:

• Airlines must include all mandatory fees and charges, other than a few specified taxes and airport fees, in the fares they post in advertising and online advertising and online. Absent such a requirement, U.S. airlines would almost surely do what many do overseas: Post a low-ball price, then add a “fuel surcharge” later on in the process.

• Airlines can’t engage in bait & switch advertising. Whenever an airline posts an airfare “sale,” the line must allocate a “reasonable” number of seats to those fares for a reasonable amount of time. Although DOT does not specify a number, the industry has construed it to be about 10% of the seats.

Unfortunately, the airlines have managed to convince DOT to retain one dishonest form of advertising: Posting fares at half their true value as “each way based on round-trip purchase.”

Charter Protection

DOT rules require that tour operators who bundle charter air travel into their packages protect travelers’ prepayments. Specifically, the operator must deposit the prepayments into an escrow account to be held until the travelers’ trips are completed or provide a security bond equal to the travelers’ deposits. The purpose of this rule was to help avoid widespread “stranding” of travelers by failed charter tour operators--and event that occurred all too often in the 1970s. Although the rule remains in force, so few trips now use charter air that its impact is minimal.

State Rights

Several states have passed or are considering “passengers rights” bills that focus on mandated limits on the amount of time airlines can keep travelers on planes while waiting for takeoff or a gate position. The airlines contend that federal law preempts such rules by states, but further litigation is likely.

Contract Rights

Beyond bumping compensation, charter security, and false advertising, when a traveler asks, “What are my rights?” in other circumstances--a delayed or canceled flight, lost baggage, or whatever--the answer is, “What’s in the contract-period.” No other special government rules apply.

An air ticket is a contract between airline and passenger--a contract that governs what airlines owe travelers in exchange for their money. This contract is codified as a “contract of carriage,” which each U.S. airline posts on its website, and which travelers accept when they buy tickets. In addition, most airlines have simplified the legalese in these contracts into a less technical 12-point "Customer Service Plan", which those lines also post under a variety of names.

Those contracts specify what airlines commit to do in cases of delays, canceled flights, lost/damaged baggage, and a host of other circumstances. Unfortunately, too many of those commitments are of the “best efforts” variety that have no real teeth. And hardly any of them satisfy the traditional tort law concept of making the traveler “whole” in the event of a problem. If any, remedies tend to be of the “least worst” alternative.

Of course, regardless of what’s in their one-sided documents, airlines are subject to ordinary contract law. A traveler who believes an airline’s compensation (or failure to compensate) for a problem is insufficient can take the airline to court. As an aid to consumers, the law deems an online ticket purchase to take place at the buyer’s computer, which means the buyer can access local small claims courts.

Specific Contractual Issues

Travelers typically ask about their “rights” any time something goes wrong with their trips. Beyond the cases mentioned above, resolution depends on the contract. Among the most frequent issues:

• Unexpected trip cancellation. Time was, airlines would refund even a “nonrefundable” ticket when a traveler had to cancel because of a sudden medical emergency. No more. They made most tickets “reusable,” meaning travelers could retain the cash value less an exchange fee, and they no longer get involved with medical questions.

• Missed flights. Most airlines no longer honor an unofficial “flat tire” policy for travelers who miss their flights because of traffic (or other reason) on the way to the airport. Now, at a minimum, travelers have to pay an exchange fee, and many lines require that they forfeit their original tickets and buy new ones.

• Missed connections. In general, if a late arrival causes a traveler to miss a connection, the airline is responsible for making new arrangements, at no extra cost. If the delay requires an overnight stay, most airlines pay for accommodations and meals. However, in delays caused by weather, airlines typically do not cover such expenses. And in connections booked on different airlines on separate tickets, the arriving airline has no responsibility, and the connecting line treats the situation as an ordinary missed flight.

• Delayed baggage. No major-line contracts specify any payments for delayed baggage. Some, however, offer overnight kits, and some actually provide cash allowances for necessities.

Airline agents often have some latitude in what they do to accommodate travelers with problems. Although their contracts do not speak to this point, anecdotally, airlines are more generous with high-ranking frequent flyers and travelers on expensive tickets than with tourists on cheap tickets.

Credit Card Rights

When consumers use a credit card to purchase an air ticket (or anything else), the Federal Fair Credit Billing Act establishes a right to a chargeback if the consumer does not receive the item or service purchased. Although the law has some quirky restrictions, it seems to work reasonably well for air travelers who buy tickets on airlines that subsequently fail.

However, the chargeback protection applies only when the supplier (1) fails to deliver the product and (2) cannot provide a refund. It does not apply to general customer dissatisfaction.