November 23, 2011

First “Stuck on Tarmac” Fine Imposed

Just over a week before the Thanksgiving holiday, the federal Department of Transportation (DOT) issued the first fine against an airline for violating a rule against holding passengers on board planes for more than three hours on an airport tarmac, absent certain exceptions (e.g., poor weather conditions). The $900,000 fine resulted from a May 29, 2011 incident at Chicago’s O’Hare International Airport where 608 passengers were kept on board 15 American Eagle Airlines planes. Investigators found that the airline was responsible because it continued to land flights at the airport even though others were not able to take off. Thus, some planes had no gate upon landing.

Under DOT’s rule, carriers must allow passengers to get off a plane if they are stuck on board for more than three hours. (International flights are subject to a four hour limit.) Airlines can be fined up to $27,500 per passenger for violating this rule. DOT secretary Ray LaHood was reported in the New York Times as saying the fine would send a message to other airlines but some industry analysts say that it will also result in more canceled flights. Airlines maintain that they are more likely to cancel flights than risk violating the rule and being fined. A September 2011 Government Accountability Office report found that the rule has reduced the amount of long tarmac delays but also appears associated with increased cancellations.