BAGS OF TROUBLE
US airlines fined for mishandling luggage
Three US airlines have agreed to each pay hundreds of thousands of dollars in fines to resolve government claims that they breached rules aimed at protecting consumers.
The US transportation department detailed the violations and the fines levied against American Airlines Group, Delta Air Lines and Frontier Airlines in documents released at the weekend.
The findings stem from separate investigations conducted by the transportation department.
The government fined American Airlines US$250,000 after determining that the air carrier failed to make timely refunds to passengers in the first half of 2015.
Department officials began investigating the company last year after receiving multiple complaints from consumers over delays receiving refunds from the airline. Rules call for airlines to issue refunds within seven business days when a passenger pays with a credit card, for example.
“We took proactive steps to address refund delays some customers experienced in 2015 due to a systems integration issue after the merger with US Airways, including investments to improve processing times,” said Shannon Gilson, an American Airlines spokeswoman.
American and US Airways merged in late 2013, creating the world’s biggest airline.
Delta agreed to pay $200,000 to resolve the government’s finding that the airline under-reported the number of mishandled baggage complaints it received from passengers. The transportation department requires airlines to report such complaints monthly and uses the information to compile airline rankings in reports aimed at consumers.
Delta said it immediately updated its policy on damaged bags once it was flagged by the government last year and has invested in providing “full transparency to the status and location of checked bags” through its FlyDelta app.
The Interenational Air Transport Association and Airlines for America launched a yearlong global campaign related to baggage tracking with the goal of reducing mishandled bags in addition to increasing efficiency in baggage operations.
Annually, more than 4 billion bags are carried by airlines globally. Less than 0.43 per cent do not arrive with their owners. The industry is determined to do even better and has agreed to Resolution 753 (R753). By June 2018, airlines have committed to being able to track a bag when it is accepted at the airport, loaded on to the aircraft, transferred to the arrival system or put into the transfer system for carriage by another airline. Airlines should also be able to share this tracking information with interline carriers as needed.
“Arriving without a bag is a very frustrating experience for our customers,” said Andrew Price, Iata’s global head of baggage. “Over the past decade we have reduced mishandled baggage by 54 per cent with improved processes. The next step is to realise the full benefits of baggage tracking to further improve performance. In the rare cases when a bag does not arrive with the passenger there will be much more information available to facilitate a quicker reunion. And the benefits don’t stop there. Tracking bags will enable proactive reporting, speed up aircraft readiness for departure, facilitate the automation of baggage processes and also reduce fraud.”
“Implementation of baggage tracking is a collaborative effort between airlines and airports to improve the passenger experience,” said , Patty Edwards, the managing director of passenger services at A4A. “Airlines and airports are working together to ensure the infrastructure is available to provide this enhanced service to our customers.”
The baggage tracking campaign will help airlines prepare for the R753 June 2018 implementation deadline with a series of initiatives tailored to various stakeholders. These include regional workshops for key aviation entities and an awareness campaign for travellers, Iata said. An implementation guide developed by industry partners is also available. In addition, Iata is offering member airlines a readiness certificate to recognise them when they develop their implementation plan for R753.
US transportation department officials, meanwhile, hit Frontier Airlines with a heftier fine than the other two of $400,000.
Investigators determined that the airline involuntarily bumped passengers from overbooked flights without first seeking volunteers or providing proper compensation in a timely manner.
They based their findings on about 200 complaints received by the company in 2014 and 2015. Airlines are required to pay passengers who have checked in and have a reserved seat on a flight, but are bumped involuntarily from an overbooked flight, what is known as “denied boarding compensation”. And the airline is required to pay passengers in cash or cheque the same day.
The inquiry also found that Frontier failed to provide disabled passengers with wheelchair assistance as needed to board or exit aircraft and get around the terminal.
Frontier did not acknowledge or deny the government’s findings in the consent order with the transportation department, but asserted that it makes “every effort” to provide assistance to passengers with disabilities. It also said that the vouchers it provides passengers who are bumped off its flights typically exceed the value of payouts required.
In rare cases when a bag does not arrive with the passenger there will be much more information available to facilitate a quicker reunion