Mutual Airline Ticket Recognition: Protect the Rights of Ticket Holders

October 2, 2001

Honorable Norman Y. Mineta
Secretary
U.S. Department of Transportation
400 Seventh Street, SW
Washington DC 20590

Dear Mr. Secretary:

The events of September 11, 2001, have had very serious effects on air travel. Among these effects are losses by US air passenger carriers from suspended operations, and from diminished demand as a result of security concerns.

Also among these effects are the situations many consumers face as holders of tickets purchased prior to September 11 for travel on or after that date, which have not been honored or may not be honored for travel dates into the future. These situations may be due to interruption of air service immediately after the events of terrorism, or to the more long-term reduction of service in the aftermath of the events. Estimates in the media suggest a reduction of about 20 percent of service as carriers seek to adjust to reduced demand.

Congress, by passing H.R. 2926, compensates out of federal funds US air carriers for various economic losses connected with these tragic events. However, there is no such provision for passengers who may hold tickets that the issuing carrier cannot honor. Consumers Union believes that carriers that receive federal funds under H.R. 2926 should be obligated to honor the tickets of other carriers, where due to service changes or discontinuation, the issuing carrier is unable to provide the contracted service.

Such a requirement should be a continuing one and should apply not only to situations resulting from the specific events of September 11, 2001, but also to any future situations related to terrorism, war, acts of nature or carrier bankruptcy. (We call to your attention to the fact that that when Eastern Air Lines declared bankruptcy, many thousands of passengers were caught in a similar situation. Consumers Union sought to intervene in the bankruptcy proceeding on behalf of consumers who held unusable tickets. However, the bankruptcy judge did not find passenger relief required under then-current laws and regulations.)

Such a requirement would involve little, if any, cost to the airlines. They are running at about half of capacity due to decreased demand. They are expected to run at substantially below capacity for the foreseeable future. The increased demand on any one carrier attributable to such a requirement should be minimal. There is virtually no marginal cost to providing service for the additional passengers on flights that have sufficient capacity to do so. If there is any cost at all, it is the minor administrative cost of processing the ticket changes and in any snacks or meals served in flight.

Such a requirement is clearly justified, given the ease of compliance and the generous financial contribution of the federal government to the airlines. It will help to restore public trust in the air transport system, which is one of the goals of the government’s actions following the September 11 events.

We urge the Department of Transportation quickly to adopt and implement such a policy in order to protect the rights of ticket holders and to help restore and maintain consumer confidence in the national air transport system.

Sincerely,

Mark Silbergeld	Frank Torres
Co-Director	Legislative Counsel
Washington Office	Washington Office

CC:	Jane F. Garvey
	Administrator
	Federal Aviation Administration

View Files Sorted By Office: Consumers Union OPI, New York - Washington DC Office
West Coast Regional Office - Southwest Regional Office - Consumer Policy Institute

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