So, the government is at it again, promising to protect the consumer as related to air travel. Best for you to understand What it is that is not only proposed, but is most probably going to be the new Rule in short order. The issue is about consumer protections rules. You may have heard about this already, but here’s the deal:
As Christopher Elliott stated recently in one of his articles on May 22,2024 (he is travel reporter admired by the industry but also has a strong following with the general public). “Please, don’t get too excited”.
According to the CEO of AidAdvisor, Anthony Radchenko, “It is a good start”…however, from my perspective, there is a terrible unintended consequence for travel advisors as the rule is proposed. ASTA (American Society of Travel Advisors) takes issue on a truly negative aspect in the ruling that affects every travel advisor and/or vendor who include travel reservations in their bookings or in an attempt to help the traveler with an air related travel request. What exactly is that unintended consequence or directive presently written in the rule? It has travel advisors all over the U.S. frustrated because of the adverse affect on the travel advisors themselves.
Let me go over the good and the bad or the ruling and how it can cause havoc to the industry in general. To some of you, you’re probably thinking that finally you’re gonna have some rights when you fly. You have to keep un mind that there are laws and rules on the books already, though probably inadequate, they move the needle for sure to help the consumer when traveling by air. This new stuff is an attempt to increase the protections….but does it go too far?
One thing is for sure, it is doubtful that any of this is gonna get it resolved or enacted before this summer and the high travel season.
I am going to review, step by step, what this whole thing entails and how this is really going to affect each of you who travel. I’m going to follow the article that Christopher Elliott wrote as to a point by point discussion.
What exactly did the government do?
There are two (2) rules to take note about:
This one sounds good, but what does it mean really: There is a requirement that IF the airline cancels a flight OR significantly delays your flight, they are required to quickly and automatically refund tickets.
The other is that the airline must disclose any fees for checked or carry-on luggage, AND, fees for changing or cancelling a reservation at the same time they display a fare quote.
That all sounds good so far, but, what is implied or specified that is being contested? According to Elliott’s article “States will handle some airline complaints”. There are to date, 18 state attorney generals that agree that states are to investigate airlines and ticket agents and hold them accountable when they violate the aviation consumer protection laws. This is where it gets really sticky and a strong objection by your local travel agent (advisor), and this is why:
Let’s say you contact a travel agent/advisor to help you purchase an airline ticket(s). You start your trip and the airlines cancels your flight and you demand an instant refund.. Guess who is then responsible for the refund? You guessed it! The person who assisted you for the purchase. No travel advisor would want to put their agency in a position to have to pay the client for something that was actually done by the airline. The agent would then be responsible to go through the airlines in a process to get refunded themselves for that expense. Let’s say the airlines drag their feet. Well, the travel agent, advisor/consultant…could become insolvent. The ONLY recourse under these rules, is to not sell airline reservations. So much for agent services huh? Now, what if the agent sells a tour or a cruise that includes air? You guessed it, the clarification is yet to be specified, but either the agent or the vendor would have to make the refund and yes, could be a lengthy process to get their money from the airlines!!!!! Not many, if any, agents or vendors can afford to do that, especially with the history of the airlines with cancellations, delays etc. Would you want to be the one made responsible for something that was NOT your personal action. Also, relying on the airlines for an immediate refund to the agent or the vendor, what do you think? This part of the rules will most likely backfire. When or if you are traveling this summer, chances are, though this will be a major inconvenience to you, the advisor has no recourse but to not offer the service…you’ll be on your own under these circumstances.
Also, part of the Federal Aviation Administration Reauthorization Bill are related to laws about minimum seat sizes. This could be extremely costly to the airlines. Also is included in the law is a refund on tickets if a flight is delayed more than 3 hours for domestic flights, six hours for international flights and prohibits airlines from charging fees for families wt sit together.
These laws/rules are supposed to take effect in late June but actually, as reported, not to be implemented for 6-12 months. To tell the truth, when you consider the minimum seat requirement, will that even happen. Sarcastically then, we can say, as Elliot wrote “don’t expect to see ne junk fees disclosed or to get a lightning fast refund this summer, Next summer, maybe”
Well, as you can assume, the airline lobby us working feverishly to insure that it would be the consumers who would have to jump through the hoops, rather than having the airlines issue automatic refunds. Though there has been a back and forth with the airlines and DOT, according to the DOT, the DOT would take precedence regarding any authority.
How does this really affect you as a consumer, does it help you? The industry is hopeful that, like in the past, the government will make promise for protections and of course this makes the general traveling public excited, but in the in, there is no governmental follow through. One frequent traveler, a Jonathn Feniak, also an attorney, you can bet “the airlines will stall for as long as possible”. There are a couple of things to consider inspite of that.. there will be some airlines that will start early and actually do the refunds in some circumstances, but too, it certainly will take time for this information to get down to the consumer.
In conculsion, there is some doubt that the government will even enforce this because there is a problem with enforcement. Mr. Radchenko who I mentioned earlier, claims he has many (over 300) complaints filed where none of them have resulted in any decision or enforcement.
According to Mr. Radchenko, in order for the rules to work the government must “prescribe penalties for the airlines” and “they need to provide the right to recover attorney’s fees and legal costs for consumers bringing a lawsuit against an airline”. Christopher Elliott reports “There are concerns that the airlines, and their powerful lobbyists will find a work-around. The result would be that passenger will ultimately be unprotected”.
Presently though, the EU, in 2001 established the rule 261 that covers EU countries requiring compensations for passengers who suffered a flight delay, cancellation or been denied boarding due to overbooking. You can look the specifics on the internet for sure, but basically it covers compensation of up to $650. Read more regarding this legislation, how to be compensated etc.
As the stomach turns, leave it to the government to come up with regulations and penalties, some good, some ridiculous and some that simply sound good, but will be long coming in reality. I’ll keep you posted of course.
