Airline law ends long Tarmac delays, fine threat improves performance

The world didn’t end. No logistical disasters emerged. In fact, everything got a hell of a lot better.

Several months ago, the prospect of a maximum three-hour tarmac delay had the airline industry proclaiming the arrival of the four horsemen. They claimed that it would severely disrupt the industry to have to give passengers the option of getting off the plane would lead to chaos. People would be furious by a lone passenger wanting to bring the plane back to the gate, and crews would be forced to operate within the constraints of customer demands (you know … like other businesses).

Well, the airline industry doesn’t appear to be any worse off than it was. In fact, it looks like the new three-hour rule is having a positive effect. Three-hour tarmac delays have effectively disappeared, and on-time arrivals have improved overall. Everything seems to be running better than it was before the airlines faced fines of up to $27,500 per passenger.

How big a different did it make?Well, only four planes sat on the tarmac for more than three hours in April. In March, 25 hit that mark, and April 2009 had an astounding 81 planes on the tarmac for that long.

So, you’re probably wondering if the airlines stacked the deck, canceling flights to protect their stats and mitigate the risk of having to yank planes back to the gate or shell out big bucks fines. Year over year, the DOT reports that cancelations fell approximately 50 percent, with only 3,637 of 529,330 flights getting chopped.

Overall, on-time performance for the 18 airlines that report to the U.S. Department of Transportation climbed to 85.3 percent in April – up from 79.1 percent in April 2009 (and better than March’s 80 percent. Most of the late arrivals were caused by aviation system delays (e.g., bad weather or heavy traffic).

Efficient use of New York airspace and generally calm weather contributed to the improvement. LaGuardia‘s on-time rate surged to 87.4 percent from 67.4 percent. JFK showed a similar improvement – from 67.3 percent to 83.5 percent.

U.S. Airways led the pack in on-time performance among major airlines and followed Hawaiian and Alaska Airlines in the total market. American Airlines was the bottom of the barrel for the large carriers, with its sister carrier, American Eagle, sucking most among all airlines.

Let’s do the math on this. Holding airlines accountable and offering up the threat of hefty fines for mistreating passengers didn’t jeopardize their ability to operate. If anything, it led to improved results. For once, it seems, the government got it right. If that sounds weird, think of an airline that takes off and lands on time. Weird, right?

Annual “DOTTY” awards honor traveling fools

Those crazy kids at the U.S. Department of Transportation (DOT) have released the winners of their annual DOTTY awards. Since 2008, the government travel industry watchdog has exhibited a most uncharacteristic sense of humor for a federal agency. Honorees are those travelers who have displayed the most moronic behavior. This year, the awards were issued just as DOT put new regulations into effect to provide increased security for travelers. Unfortunately, they can’t provide increased IQ, as well.

msnbc.com contributor Rob Lovitt breaks it down, pot cookie overdose, bomb scare ploy, monkey-disguised-as-pregnancy, tighty-whitey amphibian smuggling, and all.

DoT gives airlines $175,000 reminder ahead of Thanksgiving

Three airlines just scored a first with the U.S. government: they were fined for leaving passengers in the lurch. Continental Airlines, ExpressJet (a Continental affiliate) and Mesaba (part of Delta) racked up a total punishment of $175,000 when their combined efforts left fliers on a plane in Minnesota for six hours.

Continental and ExpressJet were slapped with a fine of $100,000, while Mesaba was nailed for $75,000, according to the Department of Transportation.

With the busiest travel day of the year right around the corner, the timing couldn’t have been better. Airlines that let their guards down could face stiff fines. And, let’s face it: these airlines can’t afford peanuts, let alone five- and six-figure fines.

On August 8, 2009, 47 passengers were stuck on a Continental Express plane, which was diverted to Rochester, Minnesota (the original plan was Houston to Minneapolis), where they were forced to spend the night. ExpressJet operated the flight, while Mesaba, the only airline working the airport, refused to let passengers leave the plane.

Another “blue ribbon” panel to fix the airline industry

It’s been a tough month year decade for the airline industry. In the United States, it’s lost $58.5 billion and cut 158,000 jobs. There never seems to be an answer, and news of an industry in jeopardy has become routine. So, .

But, it will be different this time. Transportation Secretary Ray LaHood says it will not be “just another advisory committee.”

On his Department of Transportation blog, LaHood writes, “I am not commissioning some report to fill space on my bookshelf. This committee will make a difference.”

He continues:

“Look, without a financially strong aviation industry, we will be unable to compete in domestic and international commerce. We could also fall behind in addressing our own infrastructure needs. So we must begin this important conversation in order to ensure a viable, competitive U.S. aviation industry.”

But, he has his work cut out for him, as does the advisory committee. The estimated price tag to fix the most vexing problems the industry faces is $20 billion. And, many of the recommendations from the last two panels were never implemented.

A new air traffic control system, based on GPS technology, is at the top of the list, but it’s years away. It could save us $40 billion a year in lower fuel and labor costs, not to mention trimming a lot a time from the 740 million people who take to the skies. But, the $20 billion price tag is frightening, especially for airlines that are perpetually behind the financial 8-ball. The other possible wallet belongs to the taxpayer. Anyone want to pay more?

Oh, taxes could go up again if new environmental legislation is passed, so buckle up for more.

On the subject of taxes, the airline industry gripes that it gets hit worse than liquor and tobacco companies (well, except maybe rollers of loose cigarette tobacco). This gives them even fewer financial options to improve equipment and service. For airline shareholders, Jim May, top dog of the Air Transport Association, puts the lost value at around $24.5 billion. Yeah, I spelled it because there’d be a lot of zeroes otherwise. Local and state taxes have gone up, applying even more pressure. But, the other side of this is that taxes are a fact of life for any company, and the airlines should suck it up and move on. Let’s face it: with the U.S. economy in its current state, nobody’s getting tax cuts anytime soon.

Foreign money, the airlines say, would make it easier. Right now, foreign investors’ abilities to invest in U.S. airlines are limited because of national defense considerations. But, this is probably a dated risk, according to Carlos Bonilla, who advised former President Bush (the recent one) on transportation matters. The airlines would still be subject to U.S. regulation, regardless of who owns them.

White House pushing for answers to airline industry woes

The Obama Administration is taking a closer look at the airline industry with the hopes that something can be fixed. Transportation Secretary Roy LaHood is pulling together a panel that will investigate the problems the industry faces and hopefully come up with a solution. But, I don’t think anyone’s breath is being held.

The airlines are always swamped with criticism, with consumers unhappy about customer service levels, on-time arrivals and departures, the shrinking list of amenities and increasingly cramped conditions. Now, shareholders are speaking louder about declining revenues and profits. Employees are losing their jobs, and regulators and industry observers worry about continued safety violations, including drunk and distracted pilots.

Ultimately, LaHood’s goal is for the panel to put together “a road map for the future of the aviation industry.” The panel is being convened thanks in part to a push from the airline unions, the stakeholders worried most by the layoffs that have now become routine. According to The Associated Press, they believe the industry is “dysfunctional.”

Of course, it didn’t take the airlines to offer their thoughts ask for money — lots of it. They claim that radar technology that dates back to World War II isn’t as effective as a GPS-based alternative. The industry would love to see this upgrade … as long as the government writes the check. The FAA is already prepared to spend $15 billion to $22 billion on this effort, but there is an additional $14 billion to $20 billion currently sent over to the airlines. The upside would be reductions in airport congestion, fuel consumption and carbon emissions.

The Air Transportation Association (shockingly) thinks the taxpayers should pay the bill because the system would benefit the whole country. US Airways CEO Doug Parker wrote a letter to LaHood saying that the airlines simply don’t have the cash to meet their end of this.

Unfortunately, the airline industry has once again asked for money and not offered any solutions of its own. No suggestion was offered as to any of the other difficulties pertaining to the industry, and I tend to become suspicious when there is only one problem identified. It implies that everything could be fixed, in this case, with the replacement of radar air traffic control systems with GPS technology. We’re dealing with an industry that has lost credibility rapidly, so even if this one grand move would address ever gripe, large and small, a willing audience is unlikely to take shape.

[Photo by extremeezine via Flickr]