DOT CONSENT ORDERS
October 23, 2015
- Denied Boarding Compensation – American Airlines was fined $20,000 for failing to comply with DOT’s oversales rule, 14 C.F.R. Part 250. Following an investigation of a complaint filed with the Aviation Consumer Protection Division (ACPD), the Department found that American violated Part 250 in the manner it handled Ms. Doe and 12 other members of her party after they were involuntarily denied boarding at Miami International Airport. The passengers flew from Orlando to Miami where they were scheduled to connect to an onward flight to London’s Heathrow Airport. The reservations for the group on the Heathrow leg were confirmed and they received boarding passes in Orlando. When the group arrived at the gate in Miami, however, they were pulled aside and told they could not board the Heathrow flight and were directed to the rebooking desk to reschedule their flight. Two of the passengers eventually obtained seats on the flight, but Ms. Doe and the remaining passengers had to rebook on another set of flights departing the next day to London via Barcelona.
- American Airlines acknowledged in its initial response that Ms. Doe’s group held valid, confirmed tickets and were entitled to denied boarding compensation (DBC). American stated that each adult was entitled to either a check for $168 or a $209 travel voucher, and each child passenger was entitled to either a check for $125 or a $156 travel voucher. American responded to Ms. Doe and the Enforcement Office on several occasions in response to questions by the Enforcement office on American’s calculation of DBC. In its final response regarding the complaint, American reached the conclusion that each passenger should receive $848 in compensation.
- The Department conducted an oversales complaint investigation in February 2015 and found that since at least 2008, American had misclassified involuntarily denied boardings as voluntary denied boardings which violated sections 250.10 and 49 U.S.C. § 41708. Because this misclassification impacted the accuracy of American’s data on oversales as reflected in the DOT Air Travel Consumer Reports (ATCR), DOT concluded that it constitutes unfair and deceptive practice and unfair method of competition in violation of 49 U.S.C. § 41712.
- Economic Authority – Beijing Capital Airlines d/b/a Deer Jet was fined $40,000 for operating unauthorized air transportation between the United Kingdom and the United States in violation of 49 U.S.C. §§ 41301 and 41712. Beijing Capital did not hold a foreign air carrier permit or an exemption from the DOT’s permit requirements when it operated a charter flight between the United Kingdom and the United States on September 10, 2014.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).