BOEING is a trademark of Boeing Management Company. Copyright © 2006 Boeing. All rights reserved AVICI_Welcome_1 The US Department of Transportation’s Aviation Consumer Protection Program Presented To: ACI-NA Customer Service Seminar Detroit, MI April 24, 2009 Norman A. Strickman Director, Aviation Consumer Protection Division Office of Aviation Enforcement and Proceedings Office of the General Counsel U.S. Department of Transportation

2 Office of Aviation Enforcement and Proceedings Staffing & Structure: –Aviation Consumer Protection Division Staff of 18 (Analysts/investigators, support) –Legal Division Staff of 20 (Attorneys, support) Jurisdiction: –Air Transportation (FAA has jurisdiction over safety; DHS/TSA has jurisdiction over security) –Direct (airlines) and Indirect Air Carriers –Ticket Agents

3 Aviation Consumer Protection Division Responsibilities The Aviation Consumer Protection Division deals with aviation passenger service issues. We do not handle: –Aviation Safety (this is regulated by the Federal Aviation Administration) –Aviation Security (this is administered by the Transportation Security Administration)

4 Aviation Consumer Protection Division Primary Duties: Assisting airline passengers with complaints and inquiries Educating the public Providing guidance to airlines, Congress, media, academics, foreign governments Monitoring airline service quality Helping to develop rules Assisting the Legal Division in investigating possible violations of aviation consumer rules

5 We receive complaints about: –U.S. and foreign airlines –Domestic and international itineraries –Scheduled and charter service Passengers record phone complaints in a voic system Complaints can be submitted electronically from our web site Passengers with disabilities: Toll-free telephone hotline and TTY line We Accept Consumer Complaints and Inquiries via Letter, Fax, Phone, TTY, and Web Form

6 All complaints are reviewed by analysts and entered and tracked in a computer database All complaints are referred to the airline for follow-up with the consumer Department of Transportation’s follow-up with airlines and complainants is primarily limited to regulated areas Violations of regulations are pursued by aviation enforcement attorneys Processing Consumer Complaints

7 –Delayed and canceled flights –Mishandled baggage –Oversales –Consumer complaints –Security complaints reported to TSA –Loss, injury or death of pets Air Travel Consumer Report is a monthly publication with statistics on:

8 Complaints by Type TypeCY 2007CY 2008 Flight Problems (e.g., canceled/delayed flights) 4,465 (34%)3,247 (30%) Baggage2,894 (22%) 2,081 (20%) Customer Service1,365 (10%)1,333 (12%) Reservations & Ticketing1,495 (11%)1,404 (13%) Refunds1,024 (8%) 804 (8%) Other (e.g., oversales, disability, discrimination, frequent-flyer programs) 1,925 (15%)1,778 (17%) Total13,168 (100%)10,647 (100%)

9 Legal Division Enforcement of Economic Regulations Governing Air Carriers and Ticket Agents

10 Enforcement Processes Sources of investigations: Complaints Referrals from FAA or other DOT offices On the Aviation Enforcement office’s initiative. Tools: subpoenas, orders for special reports, authority to inspect airline records. Enforcement action: Warning letter Cease-and-Desist Order and/or civil penalty (up to $27,500 per violation). Accomplished via settlement or litigation. 1/1/2000-3/31/2009 ($25M fines assessed) Suspension, revocation, ban from industry

11 DOT Airline Consumer Protection Initiatives On-site investigations of airlines to evaluate their compliance with consumer rules. Recent enforcement action against carriers for failing to disclose on-time percentage of flights upon request. Unrealistic scheduling: continuing investigation of chronic delays at large carriers. Consumer “ Notice of Proposed Rulemaking ” Require air carriers to respond to consumer problems. Declare the operation of flights that remain chronically delayed to be an unfair and deceptive practice and an unfair method of competition. Require air carriers to publish delay data on their Web sites. Require air carriers to adopt customer service plans, incorporate these in their contracts of carriage, and audit their adherence to their plans. Require air carriers to adopt contingency plans for lengthy tarmac delays and to incorporate these plans in their contract of carriage.

12 Tarmac Delays Task Force Thousands of Passengers Experienced Lengthy Tarmac Delays During the Winter of –December 29, 2006 – Severe Thunderstorms at DFW –February 14, 2007 – Snow/Ice Event at JFK Many Consumer Complaints Received by DOT. Secretary Peters Requested Action from DOT Office of Inspector General (OIG) –Investigate Delays –Provide Recommendations OIG Audit Report (Report no. AV ) –“Actions Needed to Minimize Long On-Board Ground Delays” –Issued September 25, 2007 –Recommended that DOT Establish a Task Force to Deal with Lengthy Tarmac Delays

13 Tarmac Delays Task Force (Cont’d) January 3, 2008 – “National Task Force to Develop Model Contingency Plans to Deal with Lengthy Airline On-Board Ground Delays” established Membership –Chairman – Samuel Podberesky, Assistant General Counsel for Aviation Enforcement and Proceedings –Vice Chairman – D. Kirk Shaffer, Associate Administrator for Airports, FAA –33 Members Duties Contingency Planning Document –“Development of Contingency Plans for Lengthy Airline On- Board Ground Delays” –Available on Aviation Consumer Protection Division website [ –Regulations.gov [Docket No. DOT-OST ]

14 Our Goal Fair treatment for air travelers