BTC testifies in Senate against passenger rights legislation
Friday, April 13, 2007
The
Business Travel Coalition (BTC) testified before the
U.S. Senate Committee on Commerce, Science and Transportation that the recent unfortunate incidents where passengers were stuck on airplanes for many hours does not rise to a level of national seriousness to warrant federal laws governing airline industry customer service.
Massive delays are unusual. According to the Bureau of Transportation Statistics, in 2006 just 36 out of 7.1 million commercial flights sat on the ground for five hours or more says BTC.
Importantly, though, airlines, press and government did lose focus on the airline customer service commitments as virtually all attention shifted to aviation system security after September 11. Indeed, it is time for airlines to refocus. Significantly, DOT is already moving on the issue. In addition, the FAA is examining its role in contributing to extended delays, for example, in reviewing the confusion created during the February storm in New York by the varying interpretations of the regulation concerning ice pellets.
According to BTC chairman
Kevin Mitchell,
“DOT, Congress, passenger groups and the press are a potent combination, a highly visible bully pulpit to inform consumers who in turn make purchasing decisions that drive the market. Reporters and customers pounded JetBlue in the aftermath of its customer service fiasco. The marketplace is holding JetBlue accountable.”
Legislation is not the answer according to the group’s testimony. One proposal, asserts BTC, calls for the return of jets to gates after three hours. Consider a Friday afternoon scenario at O’Hare: arriving planes take up most of the gates, 50 jets are lined up, but unable to take off due to deteriorating weather. At the three-hour point, like a line of dominos, the aircraft become paralyzed in regulatory limbo with nowhere to go. The impact would ripple through the system. Travelers would be stuck in Chicago for the weekend; those in distant cities would likewise be stranded as their aircraft are at O’Hare. There is little doubt that such legislation would lead to higher airline staffing and operational costs, and increased business airfares.
Another proposal would require compensation to passengers when airlines fail to deliver services as promised. This may be well intentioned, but it is an example of a dangerous idea with all manner of potential unintended consequences. It is imprudent to mix government-imposed financial incentives and penalties with airline operations, go, no-go decisions and safety judgments.
A BTC survey underscores the safety concern. Of 144 corporate travel managers recently surveyed, only 10% would support a Passenger Bill of Rights in the absence of an ironclad guarantee that safety margins would not be decreased.
However, there are actions the federal government can take to improve the experience of the flying public, according to the Coalition.
- Increase airline competition through open skies agreements and the promotion of new entrants such as Virgin America. Prevent radical consolidation of the airline industry. The greater the competition, the more influence the consumer has in driving airline service improvements.
- Invest in a new satellite system for air traffic control to reduce delays and improve system efficiency, especially during times of severe weather systems. Pass FAA reauthorization so that the government and the industry can head off a real crisis in passenger service.
- Build more runways such as with the O’Hare modernization, which BTC supported.
- Insist on better, more inclusive decision making on rules promulgated by the FAA to prevent highly confusing and service degrading circumstances such with as the ice pellet regulation.
- Require greater DOT enforcement of existing carrier commitments and existing regulations and laws.
Theodore Koumelis
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Friday, April 13, 2007
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