Four U.S. airlines fined for lack of information about passenger compensation

WASHINGTON, U.S. - The U.S. government has fined four of the country’s largest airlines for inaccurate information provided to passengers explaining compensation for those who are involuntarily bumped from flights or loss or damage to their baggage.

American Airlines was fined $45,000, United Airlines $35,000 and Southwest Airlines and Alaska Airlines $40,000 each, the Department of Transportation (DOT) said on Friday.

DOT states that under the federal rules, airlines must explain to passengers about potential compensation when they cannot board an oversold flight and must offer another flight that arrives no later than an hour after the original flight.

If the passenger is bumped into a flight that arrives between one and two hours, the passenger should be compensated 200 percent of the initial fare cost, and if the flight arrives beyond two hours, the passenger should be compensated 400 percent of the original cost of the ticket.

DOT investigators said that although the compensation had increased last year, airlines were still circulating the old information to passengers.

Carriers also cannot limit their liability for loss, damage or delay in baggage to less than $3,500. The amount was raised from $3400 last year. However, passengers were still receiving notices saying that the payout would be less than $3500.

While carrying out their airport inspections, DOT investigators found that airline agents at gates and ticket counters had outdated information, while some didn’t have the required notices at all.

“We are committed to ensuring that air travellers know the rules and have accurate information about compensation when they are bumped from flights and for lost, damaged or delayed baggage,” Transport Secretary Anthony Foxx said in a statement.

Airline employees getting a pay rise

American Airlines and United Airlines pilots have been getting huge raises and can expect more hikes in the future.

While American Airline pilots got a 23 percent hike last year, United Airlines pilots got a 16 percent hike in January this year.

On Friday, Delta Airlines pilots will be picketing company headquarters with a demand for a 37 percent raise over the next three years. When negotiations began earlier this year, Delta said that the company is “prepared to reach an industry-leading agreement; however, any agreement has to be sustainable and market-based.”

And it’s not just the pilots. Ground workers at American Airlines agreed for a pay rise between 15 and 55 percent, while United agreed on giving their workers a 30 percent hike over the next five years.

Agreements and negotiations come after airline employees have faced hefty pay cuts and layoffs over the last couple of years. But it looks like the scenario has turned favourable.