The passage of a “passenger bills of rights” law in New York last year, intended to ensure airline passengers on severely delayed flights out of New York airports are provided with basic consumer protections, has prompted a stir throughout the travel industry as more states consider similar legislation. During a panel discussion at The Masters Program, held in affiliation with NBTA, on February 21 in Washington, D.C., industry experts discussed the possible negative impacts of these proposals and cited the current air traffic control system as the true culprit behind record flight delays.

New York’s passenger bill of rights took effect on January 1, 2008, and requires that passengers are provided with electricity, waste removal and adequate food and water if delayed for more than three hours. Rebecca Cox, Senior Vice President of Government Affairs for Continental Airlines pointed out that while this and other state legislations focus on providing basic care for the passenger, “most federal legislation is geared toward policy disclosure.”

“Because Congress isn’t focusing on the details, states are taking over,” said Cox. The issue is “ballooning across state legislatures,” she continued, arguing that individualized laws would be a “disaster for the system.”

The Air Transportation Association and the Department of Transportation (DOT) have also argued that passenger rights should be regulated at the federal level. On March 5, this issue was brought in front of the federal Court of Appeals panel questioning the legality of state laws affecting the federal aviation industry. While no final ruling as been issued, federal judges seemed to agree that only the federal government can regulate airline services.

In January NBTA submitted comments on proposed DOT regulations aimed at improving customer service. NBTA’s written comments noted, “Generally NBTA believes that customer service is a market-driven issue, with purchasers able to make informed buying decisions based on facts related to airline service. while NBTA believes the federal government has an interest in mandating certain baseline consumer protections for airline customer service – or ‘passenger rights’ – in general, airlines are in a much better position to ascertain what their customers expect and whether certain practices are worth the cost they entail. “

Antonella Pianalto, Vice President of Government Affairs for American Express Company, attributed the recent passenger rights movement to a “grassroots effort based on consumer travel.” She contended that travelers should be treated appropriately during such extenuating circumstances as a lengthy delay, which would simply require better customer service.

Sherri Bonsall, Vice President of Corporate Travel, Meetings and Fleet Services, for Chubb Insurance, agreed with Pianalto in that corporate travelers don’t seem to be pressing for more passenger rights. “My travelers aren’t asking about it,” she said.

Legislations to protect passengers during delays only mask the overall issue, indicated Continental’s Cox. “We’re dealing with symptoms” she said. “The real problem is the air traffic control system.” 

Funding for a new satellite-based air traffic control system, the Next General Air Transportation System, or NextGen, is included in the Federal Aviation Administration reauthorization bill, which has been extended through June 30, 2008. When the current extension expires, it is expected that a lengthier extension will follow covering the duration of the Bush Administration.

Suggesting that the new system would ease flight delays, Cox said that it could ultimately save travelers money, while passenger rights legislations “would force airlines to cancel more flights [to avoid fines and other expenses], which would not result in reimbursements.”

Return to Connecting News March 2008