Airlines

Passenger stranded on Tarmac, DOT Fines $4.1 Million to American Airlines

The U.S. Department of Transportation (DOT) penalized American Airlines $4.1 million today for breaking federal laws and a rule that forbids three-hour or longer tarmac delays on domestic flights without giving customers a chance to disembark. According to the DOT’s inquiry, American kept a number of flights stranded on the runway for extended periods of time without allowing passengers to disembark.

American must obey DOT’s orders to stop breaking the law and pay the biggest amount ever assessed for tarmac delay offences. The DOT is making an unprecedented effort to protect the traveling public, which includes paying out more than $2.5 billion in refunds to passengers.

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Pete Buttigieg, secretary of Transportation for the United States, said, “This is the latest action in our continued drive to enforce the rights of airline passengers.” “Whether the problem is severe tarmac delays or issues with refunds, DOT will continue to protect consumers and hold airlines responsible,” said the statement.

The Department’s Office of Aviation Consumer Protection (OACP) conducted a thorough investigation and discovered that between 2018 and 2021, American allowed 43 domestic flights to spend significant amounts of time on the tarmac without giving passengers the chance to disembark, in violation of the Department’s tarmac delay rule. According to DOT, none of the tarmac delay exclusions, including the ones for safety and security, apply to those flights. On one of the 43 flights, passengers did not receive the necessary amounts of food and water. At Dallas Fort Worth International Airport, the majority of the delays happened. A total of 5,821 passengers were impacted by the tarmac delays.

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The Department’s $4.1 million fine is the highest civil penalty it has ever imposed for breaking the DOT’s tarmac delay rule. Of the $4.1 million assessed, the airline will receive a credit of $2.05 million for the compensation given to passengers on the impacted flights. By offering these credits, the DOT encourages airlines to compensate passengers, diverting some of the civil penalties that would have gone to the Federal Treasury to the benefit of affected passengers.

Airlines

Federal Court Imposes $100M Fine on Qantas for “Ghost Flights” Scandal

In a major ruling, the Federal Court has confirmed a hefty A$100 million penalty against Qantas for its involvement in the “ghost flights” scandal. As reported by FlightGlobal.

The court found that Qantas misled consumers by offering and selling tickets for flights that the airline had already decided to cancel. Adding to the controversy, Qantas failed to promptly notify ticket holders about these cancellations.

The penalty follows Qantas’ admission of violating the Australian Consumer Law (ACL). The airline agreed with the Australian Competition and Consumer Commission (ACCC) on the penalty amount, aiming to deter Qantas and other businesses from similar breaches in the future.

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The ACCC emphasized that this substantial fine sends a clear message: misleading customers will lead to serious consequences, regardless of a company’s size. In addition to the penalty, Qantas has committed to paying approximately A$20 million to affected passengers who unknowingly purchased tickets for canceled flights.

This compensation comes on top of any refunds or alternative flight arrangements already provided. ACCC Chair Gina Cass-Gottlieb praised the penalty, underscoring the importance of robust compliance programs red energy qantas in large corporations like Qantas.

She pointed out that Qantas has since made changes to its operating and scheduling procedures to prevent similar issues in the future.