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The DOT Proposes New Airline Rules, Like Paying Bumped Passengers $1,300

June 3, 2010 at 9:30 AM | by | Comment (1)

Well, it looks like the Department of Transportation has been doing their homework, or at least attempting to purchase some Spirit tickets with frustration, because they've proposed a whole slew of new laws to combat rising airline fees.

Keep in mind that these are just proposed regulations, but soon US air travelers might be turning their frowns upside down. Here's how the NYT sums up the important points:

The proposed rules would raise compensation for passengers denied boarding on oversold flights, allow customers to get a full refund within 24 hours of buying an airline ticket and require reimbursement of baggage fees and expenses when luggage is not delivered on time.

They would also require the airlines to more speedily notify travelers about flight delays and cancellations and ban airlines and ticket agents from advertising prices that are not the full fare — specifically mandating clearer disclosure in advertisements for “one-way” fares that can only be acquired as part of a round-trip ticket.

And now here's one of our favorite parts of the new proposal—how much a passenger will be paid by an airline if they are bumped to another flight because it's been oversold: Even if the passengers has paid for the ticket using frequent flyer miles, the airline must inform the bumped person that they can choose either travel vouchers (for free round-trips or money towards future flights) or straight-up cash. The proposal raises bumped compensation, to range between $650 and $1,300 depending on the flight length. We'll tell you something; $1,300 would stop us from crying over being bumped at the gate.

What's also exciting is that airlines cannot trick customers by advertising deceptively low fares, which end up being for a one-way only purchaseable if part of a round-trip, with additional hidden fees thrown on top (like those pesky new peak travel fees).

Keep your fingers crossed! The DOT has a 60-day comment period on this proposal before it goes ahead and adopts them, going into force then in 180 days, barring any obstacles.

Related Stories:
· US Presses the Airlines to Satisfy the Traveler [NYT]
· New Transparency and Regulation for the USA's Airline Industry is Good News for All [Pauline Frommer]
· Airline Fees [Jaunted]

[Photo: alex-s]

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