Airline policies

Not everyone loves DOT’s new refund rule

Earlier this week, the US Department of Transportation (DOT) issued new rules requiring airlines to provide prompt refunds to passengers when flights are canceled or significantly changed; when bags are delayed; and when other purchased services are not provided.

Until now, airlines defined how and if refunds were offered and defined what was a “significant change” for flights.

Now there are DOT rules that define a ‘significant change’ and spell out exactly how and when refunds must be issued. Refunds are now required if a domestic flight is delayed more than three hours and if an international flight is delayed by more than six hours.  

Passengers are the winners here. But airlines and travel agents aren’t so happy.

Airlines for America, which represents most domestic airlines, issued a statement claiming that the new rules were bad for consumers:

“Unnecessary regulatory rules issued without collaboration will lead to three things: confusion for consumers, reduction in choice and a decline in competition which historically drives up prices,” A4A said in its statement. “Very simply put, a one-size-fits-all approach is anticompetitive and anti-consumer.”

The statement said airlines are “working every day to continue offering historically low airfares and historically high wages to the 800,000 men and women who work in the U.S. airline industry.” But it warns that “the Administration is making air travel more expensive for all Americans, including those who can least afford any kind of increase.”

The American Society of Travel Advisors (ASTA) is also unhappy with parts of the new DOT rules outlining refunds for air passengers.

ASTA expressed “deep disappointment” in the new rules in its statement.

“The Department of Transportation made a profound error in this final rule,” said ASTA President and CEO Zane Kerby. “Travel agencies sold 40 percent of airline tickets in 2023, and the DOT doesn’t understand that in the limited situations where the agency is the merchant of record, payment is immediately passed on to the airline.” 

The new DOT rules outline the timeline for issuing refunds to passengers: within 7 business days for tickets charged to credit cards and within 20 calendar days for tickets paid for in other forms of payment.

ASTA is concerned that when an agency is the ‘merchant of record” these agencies will have to provide the refunds to passengers before airlines send the funds back to the agencies.

Requiring travel agencies to provide a float of those funds for airlines “will be catastrophic to this industry,” said ASTA.

So long, Sydney: take-aways from IATA’s meeting of world’s airline execs

The Vivid Sydney festival – which lights up iconic buildings and structures around the city – was a great backdrop for this week’s meeting of the world’s airline executives at the World Air Transport Summit (WATS) and the annual general meeting of IATA – the International Air Transport Association.

All sorts of briefings, reports, discussions, debates and newsy announcements take place at this event each year and will generate stories that will spool out over the course of the next few weeks.

In the meantime, here are just some of the highlights from the past few days:

Courtesy IATA

In his annual report, Alexandre de Juniac, IATA’s Director General and CEO, said that airlines are expected to achieve a collective net profit of $33.8 billion. That’s an average profit per passenger of $7.76 for the airlines, he explained, “A thin 4.1% net margin” in 2018.

Read his full report that also touched on safety, security, environmental issues and other topics here.

 

 

A bundle of 20-minute on-stage interviews were offered, on topics ranging from alternative fuels, gender equality in aviation, airport privatization and the benefits and risks of travel and tourism. Follow the links for more details from those sessions and videos of the interviews.

 

CNN’s gregarious Richard Quest was on stage with a panel of airline CEOs, including Calin Rovinsecu of Air Canada, Tim Clark of Emirates Airlines, Rupert Hogg of Cathay Pacific Airways, Pieter Elbers of KLM and Christoper Luxon of Air New Zealand.

 

Among the notable moments was when the all-male panel was asked to address gender equality (or the lack of it) at the top echelons of aviation:

Other sessions addressed everything from some creative ways getting passengers to and from airports more efficiently to the role airlines play in human trafficking.

For media attendees, the meeting wrapped up with a final debriefing session with IATA CEO and Director General Alexandre de Juniac, Qatar Airways Group Chief Executive Akbar Al Baker, who will serve as chairman of the IATA Board of Governors for the next year, and Alan Joyce, CEO of the Qantas Group, which hosted the IATA AGM in Sydney.

The Qatar Airways CEO is well-known for his bravado and controversial comments, but at an event in which other CEOs expressed a committment to increasing the role of women in the upper ranks of their companies, Akbar Al Baker’s comment that of course his airline had to be run by a man, “Because it is a very challenging position” was met with disbelief.

His comment may have been a ‘joke,’ – and he did go on to mention that Qatar has women serving as pilots, as senior vice presidents and in other top-level positions – but the comment did not sit well with the group assembled (I literally jumped out of my seat!) and just underscores the fact that this sector of industry has some real homework to do.

The end is near for separation between Virgin America & Alaska Airlines

The end is near. For most all outward appearances of Virgin America.

Alaska Airlines, which has spent the past 18 months folding Virgin America into Alaska’s operations, wrote to customers yesterday to let them know that, starting April 25:

  • There will be only one website (alaskaair.com) for all check-ins.
  • There will be only only mobile app (Alaska’s).
  • There will be one call center (Alaska’s).
  • And there we be only Alaska flight numbers.

At the airport, all check-ins for flights operated by the company will take place at Alaska’s ticket counters and kiosks.

The final switchover will take place on the night of April 24, says Alaska:

“We’ll complete physical changes at 29 airports around the U.S. and Mexico that are served by both Alaska and Virgin America. The only branding and signage will now be for Alaska Airlines. Signs and screens will all change to Alaska branding at curbside locations, lobbies, ticket counters, gates and baggage areas. While there will be some Virgin America painted aircraft still flying for a period of time after April 25, tickets will be sold only under the Alaska name.”

Airlines pledge to stop illegal wildlife trade

Rhino

The commercial aviation industry is an unwilling partner in the illegal wildlife trade, which is valued at between $5-20 billion per year and is the fourth most lucrative global crime after drugs, humans and arms.

But there is some encouraging news on this front:

Among the resolutions endorsed unanimously in Dublin this week by airlines attending the annual general meeting of the International Air Transport Association (IATA) is one which denounces the illegal trade in wildlife and wildlife products and pledges to join government authorities and conservation organizations in the fight against the traffickers of endangered animals.

“… [T]he airline industry is reinforcing its role by helping to shut down the vile activities of poaching and trafficking,” said Tony Tyler, IATA’s Director General and CEO in a statement.”

The resolution urges governments to commit additional resources to address illegal trafficking and calls on airlines to:

• Increase passenger, client, customer and employee awareness about the nature, scale and consequences of the illegal wildlife trade
• Partner with airports, freight forwarders and other stakeholders to work proactively with enforcement agencies and conservation organizations to address the problem and,
• Consider the adoption of appropriate policies and procedures to discourage trafficking through awareness programs, information sharing and incident reporting.

One of the high profile efforts already underway comes from Emirates. In November 2015, the airline introduced two A380 jets with a special livery in support of United for Wildlife, the global collaboration that unites the efforts of the world’s leading wildlife charities in the fight against the illegal wildlife trade. A video describing the effort is also being aired on flights.

Emirates wildlife plane

In March 2016 IATA was one of the signers of the Buckingham Palace Declaration supporting the United for Wildlife Transport Taskforce initiative of The Royal Foundation of the Duke and Duchess of Cambridge and Prince Harry.

The resolution also encourages airlines individually to sign the Declaration and more than a dozen did so at the IATA annual general assembly meeting.

Here’s the recorded message from Prince William played at the meeting:

Tune-up tips for travelers

TRAVEL SUITCASES

Even the savviest traveler can use a few new tricks each year, whether on the road for business or leisure.

So here are some of the expert tips I gathered for a recent CNBC Road Warrior piece.

Fly Frugally

Before the end of the year, take inventory of your frequent flier miles. Claim credit for any missing miles and decide if you can top off—with an extra flight, hotel stay or mile-generating purchase—accounts where you are close to getting elite status perks for the following year.

When shopping for new flight reservations, sign up for fare alerts, enlist helpers such as Kayak’s price forecasting tool and remember the “24-hour reservation requirement” put into effect in January 2012 by the U.S. Department of Transportation. The rule requires carriers to hold a flight reservation for 24 hours without payment, or allow a reservation to be canceled within 24 hours without penalty if the reservation is made one week or more ahead of the flight’s departure date.

“If you see an airfare you’re comfortable with, book it,” said Kayak spokeswoman Maria Katime. You can continue your research and, if you find something better, go back and cancel.

Reasonable rental cars

When it comes to cars, reserve once you know your dates and have done some shopping, but recheck prices closer to the time of travel. “Prices can drop last-minute, depending on the actual availability of cars versus what the companies anticipate,” said travel expert Carol Pucci, who saved more than $100 with this method on the Big Island of Hawaii. “It was easy to do because I hadn’t prepaid, which is hardly ever a good idea given the chances of prices falling,” said Pucci.

To make sure a rental car company doesn’t charge you for scrapes, scratches or dings already on the car you’re issued, “take pictures of the car before you drive it away and when you return it,” said Joe Brancatelli, publisher of the business travel website Joe Sent Me.

“Rental firms are getting extremely aggressive about these charges and since the cars in the fleet are older these days than they used to be, there’s more of a chance you’ll be given a car with a ding and/or scratches,” he said.

Honing in on hotel deals

Sign up for the frequent stay program of any hotel you visit to take advantage of free perks that can include complimentary breakfast, free Wi-Fi and welcome amenities such as cheese plates and bottles of wine for even the first-time guest.

Research room rates and hotel property reviews online, but as a final step, call the hotel you’ve chosen. “Once I narrow down my hotel choice, I call the hotel to see if they have any better offers then what I see online,” said Rob Connors, assistant vice-president of marketing for National Car Rental. “Your membership in a club or association might get you an added discount, and many times hotels offer special rates for suppliers calling on nearby companies.”

It’s also a good idea to check city tourism sites for short-run, special promotions.

Some cities have destination marketing funds and packages designed to generate room sales during off-seasons. The inaugural Hotel Week LA runs from Nov. 29 to Dec. 14, and in 2015, more than 30 Manhattan properties are participating in the fourth New York Hotel Week from Jan. 3 to 18. The programs offer significant discounts rate for some of each city’s top, usually very pricey, properties.

Vancouver’s “Be Vancouver” promotion gives guests $125 American Express prepaid gift cards for bookings made by Nov. 16 for stays through Feb. 28, bringing rates in some upscale hotels down to less than $60.

“The offers coming from that program are the best we have on offer,” said Jim Mockford, general manager of the Listel Hotel. “They’re highly targeted in regards to time frame, so you have to be quick and flexible. So it’s always a good idea to put your name on the mailing list of your favorite hotels. You’ll hear about some great deals that you’ll never see anywhere else.”

Choosing travel gear

To get the best bang for your buck when shopping for travel gear “make a list of three to five ‘musts’ for your new bag and prioritize these as you do research,” said Michele Marini Pittenger, president of the Travel Goods Association.

“The manufacturer’s warranty policy can be an indicator of durability, but be sure to check the dimensions of new carry-on bags to avoid getting dinged by extra charges when flying,” she said.

When to use a travel agent

Modern online booking tools and mobile apps make it easy to research and reserve much of your own travel. But the customer services of a travel advisor who can quickly reroute and rebook you when there’s a travel snafu can come in handy.

“When it’s a trip that matters—family vacations, celebration travel, a destination you want to experience rather than ‘see’—that’s when you most need a travel advisor,” said Matthew Upchurch, chairman and CEO of Virtuoso, a network of luxury travel agencies. “Not only will they save you precious time, they can save you money with negotiated hotel benefits and extensive firsthand knowledge to ensure that you get exactly what you expect from the trip.”

Boarding the bus

“Bus travelers typically save 50 to 55 percent versus the train and 55 to 73 percent versus flying,” said Joe Schwieterman, a professor at DePaul University in Chicago and author of the Traveler’s Tradeoff study comparing intercity bus, plane and train fares across the United States.

“The ‘sweet spot’ for bus travel involves trips between 125 and 300 miles. Driving can be tedious, but air travel is often not cost effective,” he said.

When to book the bus?

“As early as possible,” said Megabus spokesman Mike Alvich. “Generally customers booking 30 to 45 days in advance will see the greatest savings, but even last-minute trip tickets are still very affordable in comparison to last-minute airline travel or even the cost of filling the gas tank of your personal vehicle.”

Smarter destination choices

You may not have much choice where business trips take you, but you can save money on leisure trips and avoid crowds by heading for South Africa, Shanghai, Uruguay, Portugal or some of the other “best-value” destinations on Lonely Planet’s Best Travel 2015 list.

Choosing “almost-as-good” alternatives to classic experiences in more expensive cities can also save cash.

“European cities are stuffed full of amazing historic buildings and churches that can be seen and explored for free without the crowds of big-name things,” said Lonely Planet’s editorial director, Tom Hall. “Gorilla trekking might be an unforgettable experience in East Africa, but looking out for chimpanzees and smaller primates can be much more fun and is certainly easier on the wallet.”