Airlines Seek to Delay New Consumer-Benefiting Regulations (FAA) (UAL) (DAL)

June 15, 2011 10:02 AM EDT
Airlines are trying to delay paying you more if they screw up.

Rumors Wednesday suggest three airline trade groups have requested a 180-day delay to implement new passenger protections.

New rules include such things as more compensation for being bumped from a flight, bag fee refunds if bags are lost, and taxes and government fees on advertised fares.

The advertising fee rule is expected to take effect on October 24th, while the other requirements are set to begin August 23rd.

The groups have asked the U.S. Transportation Department to "clarify" some of the rules, according to the AP. Specifically, one group considered the possibility of clearing baggage fees in an email or hyperlink rather than on e-ticket confirmations.

Associations who were included in a regulatory filing last week include the Air Transport Association of America, Regional Airline Association, and the Air Carrier Association of America. The delays were also requested to train employees and update computer systems.

Airlines to watch include:
  • Southwest Airlines (NYSE: LUV);

  • Delta Air Lines Inc. (NYSE: DAL);

  • AMR Corp. (NYSE: AMR);

  • JetBlue Airways Corp. (Nasdaq: JBLU);

  • United Continental (NYSE: UAL); and

  • US Airways Group, Inc. (NYSE: LCC).
The Claymore/NYSE Arca Airline ETF (NYSE: FAA) is down 1.5 percent Wednesday morning.


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