Southwest Airlines 2014 Annual Report Download - page 24

prohibiting discrimination by airlines against consumers on the basis of race, religion, national origin,
or sex.
Under the above-described authority, the DOT has adopted so-called “Passenger Protection
Rules,” which address a wide variety of matters including flight delays on the tarmac, 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) assurances that no domestic flight will remain on the airport tarmac for more
than three hours and that no international flight will remain on the tarmac at a U.S. airport for more
than four 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) an 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) an 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 domestic flights (i.e., domestic
flights that operate at least ten 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 occurrence or 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 involuntarily 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.
In May 2014, the DOT issued a proposed rule that would further expand the Passenger
Protection Rules. The DOT’s proposed rule would, among other things, require airlines to share with
ticket agents fee information for “basic ancillary services,” including fees for a first checked bag,
second checked bag, carry-on items, and advance seat selection. The Company is not able to predict
16