DOT Fines United for Failing to Make Timely Refunds; Airline Also Filed Inaccurate and Late Reports

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DOT 75-13
Friday, August 30, 2013
Contact: Bill Mosley
Tel.: (202) 366-4570

DOT Fines United for Failing to Make Timely Refunds; Airline Also Filed Inaccurate and Late Reports

            The U.S. Department of Transportation (DOT) today fined United Airlines $350,000 for failing to make prompt refunds to consumers. The Department also cited the airline for filing inaccurate reports of its mishandled baggage and oversales, and failing to file timely reports of incidents involving animals in flight. DOT did not assess a fine for these violations because United disclosed the reporting errors to DOT and took corrective action.

            “When passengers are owed a refund, they have the right to expect the airline to act promptly and give them their money back,” said U.S. Transportation Secretary Anthony Foxx. “We also expect airlines to file accurate and timely consumer reports so that passengers will have the information they need when choosing an airline.”

            Airlines are required to process refund requests within seven days of receipt of a complete request when the ticket is purchased by credit card. Refunds must be made within 20 days for tickets purchased by cash or check. United’s customer service commitment, posted on its website, pledged to comply with these standards. However, the Department’s Aviation Enforcement Office, during an on-site inspection at the airline’s headquarters, found that between March and May of 2012, United failed to process over 9,000 refund requests in a timely manner.

            In addition, United underreported the number of mishandled baggage reports it received from passengers between January and October 2011 and the number of passengers it bumped, both voluntarily and involuntarily, for each quarter of 2011 from flights on which it sold more tickets than the number of available seats. The underreporting made United’s ranking in these categories seem better than it actually was. Also, during 2012 and 2013, United failed to file timely reports for a few incidents involving the death, injury or loss of animals on its flights.

            Today’s consent order is available at www.regulations.gov, docket DOT-OST-2013-0004.

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DOT Fines Ticket Agents for Code-Share Disclosure Violations

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DOT 73-13
Thursday, August 29, 2013
Contact:   Bill Mosley
Tel.:  (202) 366-4570

DOT Fines Ticket Agents for Code-Share Disclosure Violations

The U.S. Department of Transportation (DOT) today fined three ticket agents for violating the Department’s rules on disclosure of code-share flights. Today’s consent orders are part of an ongoing effort by DOT to ensure that ticket agents comply with the code-share disclosure rules.

DOT issued a $100,000 fine against Liberty Travel and $40,000 fines against both STA Travel and AAA Mid-Atlantic, and all three companies were ordered to cease and desist from further violations. The amount of the fines was based on the specific circumstances of the individual cases.

“When passengers buy an airline ticket, they have a right to know which airline will be operating their flight,” said U.S. Transportation Secretary Anthony Foxx.  “We will continue to make sure that all companies selling air transportation are transparent with consumers and comply with our code-share disclosure rules.”

Under code-sharing, an airline will sell seats on flights using its designator code but the flights are operated by a separate airline. 

DOT takes enforcement action when necessary against companies that sell air transportation based on consumer complaints and the Department’s own internal investigations. In this case, DOT’s Aviation Enforcement Office made telephone calls to a number of agents during January and February of 2013 and inquired about booking certain flights. During these calls, the reservations agents for all three companies failed to disclose that the flights were being operated under code-share arrangements. The agents identified only the name of the marketing airline and not the corporate name of the airline operating the flight or any other name under which the flight was marketed. This violated DOT rules requiring airlines and ticket agents to inform consumers if a flight is operated under a code-share arrangement, as well as disclose the corporate name of the transporting airline and any other name under which the flight is offered to the public.

DOT has now issued four fines for code-sharing violations this year, following a $60,000 penalty on May 23 against ticket agent JTB USA.

The consent orders are available at www.regulations.gov, docket DOT-OST-2013-0004. 

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BTS Releases June North American Freight Numbers

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BTS 40-13

Wednesday, August 28, 2013

Contact: Dave Smallen

Tel: 202-366-5568

 

BTS Releases June North American Freight Numbers

Trucks Transported 60.7% of U.S.-NAFTA Trade in June 2013

 

The Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation today released June North American Free Trade Agreement (NAFTA) freight numbers showing that trucks carried 60.7 percent of the $93.5 billion of freight moved in June 2013 between the United States and its NAFTA partners, Canada and Mexico. Trucks were followed by rail at 15.8 percent, vessels at 8.2 percent, pipelines at 6.5 percent and air at 3.9 percent.

 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that the surface transportation modes of truck, rail and pipeline carried 83.0 percent of the total NAFTA freight flows, $77.6 billion of the total of $93.5 billion carried by all modes, including air and vessel. The value of freight carried by the surface modes in June 2013 declined 1.0 percent from June 2012, compared to the 0.8 percent decrease for all modes. Freight value on all modes rose 56.7 percent from June 2009.

 

For freight flows with Canada, trucks carried 56.0 percent of the $52.7 billion of the freight, followed by rail at 16.8 percent, pipelines at 10.8 percent, vessel at 5.5 percent and air at 4.5 percent. The surface transportation modes of truck, rail and pipeline carried 83.7 percent of the total U.S.-Canada freight flows.

 

            For freight flows with Mexico in June, trucks carried 66.8 percent of the $40.8 billion of the freight, followed by rail at 14.5 percent, vessel at 11.7 percent, air at 3.2 percent and pipeline at 0.9 percent. The surface transportation modes of truck, rail and pipeline carried 82.1 percent of the total U.S.-Mexico freight flows.

 

Beginning with January 2013, BTS monthly TransBorder press releases contain data for all modes of transportation. Press releases and the BTS website now define surface transportation modes as truck, rail and pipeline. Data on surface modes can be found in Figure 3 and in Tables 2, 3, 4 and 7. See North American TransBorder Freight Data on the BTS website for additional data for surface modes since 1995 and all modes since 2004.

 

Data in this press release are not adjusted for inflation, except for the monthly totals illustrated in Figure 2 for comparison.

See BTS Transborder Data Release for summary tables, state rankings and additional data. See North American Transborder Freight Data  on the BTS website for additional data for surface modes since 1995 and all modes since 2004.

           

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BTS Releases June Passenger Airline Employment Data

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BTS 39-13
Tuesday, August 27, 2013
Contact: Dave Smallen
Tel: 202-366-5568 

BTS Releases June Passenger Airline Employment Data;
June 2013 Employment Down 2.4 Percent from June 2012 

U.S. scheduled passenger airlines employed 381,441 workers in June 2013, 2.4 percent fewer than in June 2012, the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today. June was the 10th consecutive month that full-time equivalent (FTE) employment for U.S. scheduled passenger carriers was below that of the same month of the previous year. 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that the June 2013 FTE total for scheduled passenger carriers was 9,482 fewer than in June 2012. Scheduled passenger airline categories include network, low-cost, regional and other airlines.  

The 2.4 percent decline in FTEs in June 2013 from June 2012 was primarily due to two factors.  First, American Airlines, the industry’s third largest employer, filed for bankruptcy and reduced FTEs by 8.4 percent year-to-year. Second, network carriers have responded to increased fuel costs by reducing contracts with the regional airlines that operate less fuel-efficient regional jets.  Regional airline employment is down 4.4 percent year-to-year. 

The five network airlines that collectively employ two-thirds of the scheduled passenger airline FTEs reported 2.8 percent fewer FTEs in June 2013 than in June 2012, the 11th consecutive month with a decline from the same month of the previous year. Delta Air Lines reduced FTEs by 3.9 percent from June 2012, American Airlines by 8.4 percent, and United Airlines by 0.1 percent. US Airways reported 2.1 percent more FTEs, while Alaska Airlines increased FTEs by 3.7 percent from June 2012. Network airlines operate a significant portion of flights using at least one hub where connections are made for flights to down-line destinations or spoke cities. 

Three of the six low-cost carriers - Allegiant Airlines, Spirit Airlines and JetBlue Airways - reported an increase in FTEs from June 2012.  Southwest Airlines, Virgin America and Frontier Airlines reported FTEs declined from a year earlier. Low-cost airlines operate under a low-cost business model, with infrastructure and aircraft operating costs below the overall industry average. 

See Passenger Airline Employment press release for summary tables and additional data. Historical employment data can be found on the BTS web site. 

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BTS Releases May 2013 U.S. Airline Traffic Data

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BTS 38-13
Thursday, August 22, 2013
Contact: Dave Smallen
Tel: 202-366-5568 

BTS Releases May 2013 U.S. Airline Traffic Data;
System Passengers Up 1.7% from May 2012  

The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today that U.S. airlines carried 64.8 million systemwide (domestic + international) scheduled service passengers in May 2013, 1.7 percent more than in May 2012.

The systemwide increase was the result of a 1.4 percent increase in the number of domestic passengers (56.5 million) and a 3.7 percent increase in international passengers (8.2 million). 

 

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that U.S. airlines carried 0.5 percent more total system (domestic + international) passengers during the first five months of 2013 (298.7 million) than during the same period in 2012. Domestically, U.S. airlines carried 259.9 million passengers, 0.3 percent more than 2012. Internationally, they carried 38.8 million passengers, up 1.9 percent from 2012. See Tables 2, 8 and 14 of Air Traffic Press Releases for previous-year data. 

The May 2013 system load factor of 84.2 percent, the domestic load factor of 84.8 percent and the international load factor of 83.0 percent were all record highs for the month of May as year-over-year growth in revenue passenger-miles exceeded both domestic and international capacity expansion. Load factor is a measure of the use of aircraft capacity that compares Revenue Passenger-Miles (RPMs) as a proportion of Available Seat-Miles (ASMs). 

Top Airlines 

In May, Delta Air Lines carried more system passengers than any other U.S. airline.  Southwest Airlines carried the most domestic passengers. United Airlines carried the most international passengers. The top 10 U.S. airlines in terms of number of passengers carried 80.4 percent of systemwide passengers, up from 79.9 percent carried by the U.S. airlines that were in the top 10 in May 2012.

See Air Traffic Release for summary tables and additional data. Additional traffic data can be found on the BTS Airlines and Airports page.  Click on a link in the Quick Links box on the right.  For more historical data, see Traffic on the BTS website.  

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