DOT ASSESSES CIVIL PENALTIES AGAINST FOUR DOMESTIC AIRLINES FOR PROVIDING INACCURATE COMPENSATION INFORMATION
September 22, 2016
American Airlines, Alaska Airlines, Southwest Airlines and United Airlines were each assessed civil penalties ranging from $35,000 to $45,000 for violating several DOT regulations, including the Department’s oversales rules, 14 C.F.R. Part 250, the domestic baggage liability rule, 14 C.F.R. Part 254, and failing to adhere to the Customer Service Plan requirements found in 14 C.F.R. § 259.5. These fines are the result of violations uncovered during compliance inspections by the Department’s Office of Aviation Enforcement and Proceedings at various U.S. airports.
$45,000 against American Airlines – The Enforcement Office found that American Airlines agents at boarding gates and ticket counters failed to produce proper copies of the carrier’s written denied boarding statement (250.9 Notice) upon request. In some cases agents produced outdated copies of the 250.9 Notice with compensations amounts being more than five years out of date. American Airlines agents also provided ticket notices or displayed signs which limited the carrier’s domestic baggage liability to amounts less than $3,500. Pursuant to 14 C.F.R. Part 254, “an air carrier shall not limit its liability for provable direct or consequential damages resulting from the disappearance of, damage to, or delay in delivery of a passenger’s baggage to an amount less than $3,500 per passenger for travel on or after August 25, 2015”.
$40,000 against Alaska Airlines – The Enforcement Office found that Alaska Airlines agents at boarding gates and ticket counters failed to produce accurate copies of the carrier’s written denied boarding statement upon request. In many instances, the agents provided outdated copies with compensation amounts below the minimum value as stated in 14 C.F.R. § 250.5. Additionally, some compensation amounts were more than five year out of date. Alaska agents also produced ticket notices or displayed signs which limited the carrier’s domestic baggage liability to amounts less than $3,500.
$40,000 against Southwest Airlines – The Enforcement Office found that Southwest Airlines agents at some boarding gates and ticket counters could not provide proper copies of the carrier’s written denied boarding statement upon request. One agent provided a partial copy of Southwest’s denied boarding statement, which contained compensation amounts less than the actual amounts stated in 14 C.F.R. § 250.5. Furthermore, agents produced ticket notices or displayed signs which limited the carrier’s domestic baggage liability to amounts less than $3,500.
$35,000 against United Airlines – The Enforcement Office found that United Airlines agents at some boarding gates and ticket counters could not provide proper copies of the carrier’s written denied boarding statement upon request. Some agents could not produce a copy of the written denied boarding statement at either the ticket counter or the boarding gate. In some instances agents produced outdate copies of the statement with compensation amounts below the minimum value as stated in 14 C.F.R. § 250.5.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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