Southwest Airlines 2013 Annual Report Download - page 23

Under the above-described authority, the DOT has adopted so-called “Passenger Protection Rules,” which
address a wide variety of matters including tarmac delays, chronically delayed flights, denied boarding
compensation, and advertising of airfares, among others. Under the Passenger Protection Rules, U.S. passenger
airlines are required to adopt contingency plans that include the following: (i) the assurance that no domestic
flight will remain on the airport tarmac for more than three hours unless the pilot-in-command determines there
is a safety-related or security-related impediment to deplaning passengers or air traffic control advises the pilot-
in-command that returning to the gate or permitting passengers to disembark elsewhere would significantly
disrupt airport operations; (ii) the assurance that air carriers will provide adequate food and potable drinking
water no later than two hours after the aircraft leaves the gate (in the case of departure) or touches down (in the
case of arrival) if the aircraft remains on the tarmac, unless the pilot-in-command determines that safety or
security considerations preclude such service; and (iii) the assurance of operable lavatories, as well as adequate
medical attention, if needed. Air carriers are required to publish their contingency plans on their websites.
The Passenger Protection Rules also subject airlines to potential DOT enforcement action for unfair and
deceptive practices in the event of chronically delayed flights (i.e., flights that operate at least 10 times a month
and arrive more than 30 minutes late more than 50 percent of the time during that month). In addition, airlines are
required to (i) display ontime performance on their websites; (ii) adopt customer service plans, publish those
plans on their website, and audit their own compliance with their plans; (iii) designate an employee to monitor
the performance of their flights; (iv) provide information to passengers on how to file complaints; and
(v) respond in a timely and substantive fashion to consumer complaints. Airlines that violate the Passenger
Protection Rules are subject to potential fines of up to $27,500 per passenger, the maximum allowed for violating
any aviation consumer rule.
The Passenger Protection Rules also require airlines to (i) pay up to $1,300 in denied boarding
compensation to passengers bumped from flights; (ii) refund any checked bag fee for permanently lost luggage;
(iii) prominently disclose all potential fees for optional services on their websites; and (iv) refund passenger fees
paid for ancillary services if a flight cancels or oversells and a passenger is unable to take advantage of such
services.
The Passenger Protection Rules also require that (i) advertised airfares include all government-mandated
taxes and fees; (ii) passengers be allowed to hold a reservation for up to 24 hours without making a payment;
(iii) passengers be allowed to cancel a paid reservation without penalty for 24 hours after the reservation is made,
as long as the reservation is made at least seven days in advance of travel; (iv) fares may not increase after
purchase; (v) baggage fees must be disclosed to the passenger at the time of booking; (vi) the same baggage
allowances and fees must apply throughout a passenger’s trip; (vii) baggage fees must be disclosed on e-ticket
confirmations; and (viii) passengers must be promptly notified in the event of delays of more than 30 minutes or
if there is a cancellation or diversion of their flight.
The DOT has announced its intention to further expand the Passenger Protection Rules, with particular
focus on the public disclosure of airline-imposed ancillary fees for the sale of optional products and services. The
DOT is reportedly considering, among other things, whether to require airlines to disclose and make such
optional products and services available for purchase through all sales channels, including “global distributions
systems,” that an airline uses to sell its flights rather than only through proprietary airline websites. The DOT’s
proposed expansion of the Passenger Protection Rules is expected to be released in the first half of 2014. The
Company is not able to predict the impact of such a requirement on its services, although the Company is likely
to be affected to a lesser degree than most other airlines, which generally offer more ancillary products and
services. The DOT has expressed its intent to aggressively investigate alleged violations of the Passenger
Protection Rules.
The DOT has also proposed new rules that would require airlines to report more information to the DOT
on the amount and types of ancillary fees collected from passengers, as well as the number of checked bags and
mishandled wheelchairs. The proposal would revise current reporting requirements to increase data collection on
the amount airlines receive from different, specific types of fees. The proposed rule would require airlines to
report 18 categories of fee revenue. The DOT is expected to issue a final rule in this proceeding in 2014.
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