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U.S. fines airlines more than $7M for not providing refunds

nytimes.com

11–20 of 242 posts

Re: U.S. fines airlines more than $7M for not providing refunds

#11
post #9

What a bargain for the airlines. A 1% penalty and they probably saved at least 5% in financing costs.

To be fair, it does say that the penalties will ratchet up if the airlines don't correct their behavior.

I'll believe it when I see it. Threatening to take a kid's toy away when they know you won't cause you never do doesn't teach a good lesson.

Re: U.S. fines airlines more than $7M for not providing refunds

#13
post #7
post #4

Earlier quoted context omitted.

If you look more closely that’s not the case. If they pay the refunds, they get to subtract a portion of that from the fine. Dan has more detail and isn’t paywalled: https://www.dansdeals.com/more/news/airline-news/dot-issues-...

It sounds like that's only the case for "good-will refunds" where the airline wasn't otherwise obligated to pay the refund. > Frontier said it had issued about $100 million in what it described as “good-will refunds” that were not legally required. The airline will pay only $1 million of the $2.2 million fine because the Transportation Department credited it for providing refunds to passengers who canceled nonrefunda…

Businesses never admit that they are legally required to pay a refund. It would constitute a public material statement and open the flood gates to more refunds. For a publicly traded company this would probably actually be some sort of SEC violation as well.

I can't tell you the number of times I've gotten a "one time refund" from the same companies over and over. From the perspective of a business any refund issued is done in good will. Otherwise it isn't a refund.

Re: U.S. fines airlines more than $7M for not providing refunds

#14
post #4
post #3

Earlier quoted context omitted.

In this case, it sounds like the airlines are paying the fine AND the refunds. > The department’s intervention contributed to the airlines’ issuing more than $600 million in refunds, it said. > ... > [United States Secretary of Transportation] Mr. Buttigieg said that, while the department was more focused on ensuring that refunds were paid than on collecting fines, he had nonetheless asked staff to look into whether…

If you look more closely that’s not the case. If they pay the refunds, they get to subtract a portion of that from the fine. Dan has more detail and isn’t paywalled: https://www.dansdeals.com/more/news/airline-news/dot-issues-...

Weird -- why not make the fine $604 million (or whatever they truly should owe in refunds) and allow all but, say, 4 million to be reduced?

Re: U.S. fines airlines more than $7M for not providing refunds

#15
I am relieved to see that regulators appear aware of the game that Frontier seems to be playing. I flew to Denver recently and didn't need to travel heavy so I went with their cheap fare. The flight from SFO was fine. The flight from DEN to SFO was extremely frustrating. We arrived at DEN early because we got a text message warning us about major TSA delays. Literally the moment we were about to board Frontier changed the flight status to canceled. The plane was there, we saw it arrive and I didn't get the impression there was mechanical issues. It was one of those situations where I intuited that it was useless to try to get my money back and I should just vow to never fly with them again and give everyone a heads up not to use them (like I am doing here).

Re: U.S. fines airlines more than $7M for not providing refunds

#16

I am relieved to see that regulators appear aware of the game that Frontier seems to be playing. I flew to Denver recently and didn't need to travel heavy so I went with their cheap fare. The flight from SFO was fine. The flight from DEN to SFO was extremely frustrating. We arrived at DEN early because we got a text message warning us about major TSA delays. Literally the moment we were about to board Frontier change…

They are the scum of the universe. If you don't pay for your seats, they will separate you and your party even if there are available seats together, because they know you'll shell out cash to fix it. (I think American does this now too, and possibly others but I haven't confirmed they also do it when there's available seats).

Re: U.S. fines airlines more than $7M for not providing refunds

#17

What a bargain for the airlines. A 1% penalty and they probably saved at least 5% in financing costs.

When people see small fines like this, they assume it’s a slap on the wrist.

And it is. Because the message is loud and clear: don’t make us pay attention to you and fix your shit.

Re: U.S. fines airlines more than $7M for not providing refunds

#18

I am relieved to see that regulators appear aware of the game that Frontier seems to be playing. I flew to Denver recently and didn't need to travel heavy so I went with their cheap fare. The flight from SFO was fine. The flight from DEN to SFO was extremely frustrating. We arrived at DEN early because we got a text message warning us about major TSA delays. Literally the moment we were about to board Frontier change…

Why would you not get your money back from an airline-initiated cancellation? I get giving up on delay compensation - I'm currently fighting travel insurance on an 18 hour delay that incured a hotel stay - but "we canceled your flight, but we're keeping your money" seems like a scenario where the airline clearly has no leg to stand on.

Hell, do a credit card chargeback.

Re: U.S. fines airlines more than $7M for not providing refunds

#19
post #16

I am relieved to see that regulators appear aware of the game that Frontier seems to be playing. I flew to Denver recently and didn't need to travel heavy so I went with their cheap fare. The flight from SFO was fine. The flight from DEN to SFO was extremely frustrating. We arrived at DEN early because we got a text message warning us about major TSA delays. Literally the moment we were about to board Frontier change…

They are the scum of the universe. If you don't pay for your seats, they will separate you and your party even if there are available seats together, because they know you'll shell out cash to fix it. (I think American does this now too, and possibly others but I haven't confirmed they also do it when there's available seats).

Isn't that their whole game? If you're going to fly them you should know it.

They have the cheapest fares, but they do that by upselling everything and any mistake will be expensive. If that's worth it to you (and sometimes the cost difference is big enough for it to be worth it imo) then it can be a reasonable tradeoff.

Flying an extreme lost cost airline that's entire existence is predicated on this model and expecting them to act contrary to that is confusing to me.

Re: U.S. fines airlines more than $7M for not providing refunds

#20

I am relieved to see that regulators appear aware of the game that Frontier seems to be playing. I flew to Denver recently and didn't need to travel heavy so I went with their cheap fare. The flight from SFO was fine. The flight from DEN to SFO was extremely frustrating. We arrived at DEN early because we got a text message warning us about major TSA delays. Literally the moment we were about to board Frontier change…

> major TSA delays.

This infuriates me. Last week I was stuck in line for TSA for an hour and a half at Sea-Tac. The TSA clowns had one guy looking at the X-rays of luggage at the speed of molasses. Am I to believe that the TSA, FAA and airlines can't coordinate to determine when gluts of incoming passengers are expected? Bullshit. Why didn't they have more TSA workers on shift? Because they don't give a shit, nothing in the structure of the system gives the TSA an incentive to give a shit and do their job well. What do they care if people miss their flights? They don't, those smug pieces of shit don't care at all.

They even have signs plastered all over their checkpoint threatening you with federal charges and huge fines if you "verbally abuse" the TSA workers. In this country it is legal for me to call a traffic cop a fascist pig, but I can't say the same to a TSA agent? I hate them so much.

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