[Congressional Record Volume 147, Number 29 (Wednesday, March 7, 2001)]
[Senate]
[Pages S1992-S1994]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN:
  S. 483 A bill to amend title 49, United States Code, to improve the 
disclosure of information to airline passengers and the enforceability 
of airline passengers and the enforceability of airline passengers' 
rights under airline customer service agreements, and for other 
purposes; to the Committee on Commerce, Science, and Transportation.
  Mr. WYDEN. Mr. President, today I am introducing legislation to 
provide enforceable consumer protections for airline passengers. The 
bill I introduce today is the result of a process that started over two 
years ago, when I first introduced bipartisan passenger rights

[[Page S1993]]

legislation. Instead of enacting that legislation, Congress decided to 
give the airlines a year-and-a-half to improve customer service through 
voluntary plans. At the end of that time, the Department of 
Transportation Inspector General was to report to Congress on the 
airlines' progress.
  The Inspector General released his report last month. It is a 
carefully researched and balanced document, and it finds that, while 
the airlines have made progress in some areas, there are also 
significant continued shortcomings. In particular, in many cases 
passengers are still not receiving reliable and timely communications 
about flight delays, cancellations, and diversions. The report 
recommends a number of specific, reasonable steps that could be taken 
to improve the experience of the flying public.
  I want to commend the chairman of the Commerce Committee, Senator 
McCain, and Senators Hollings and Hutchison, for the bill they have 
introduced, which reflects the essence of the Inspector General's 
report. My bill is intended to complement and further the discussion 
that legislation has begun.
  My legislation closely tracks the findings and recommendations of the 
Inspector General's report. First, it features ``right-to-know'' 
provisions that require airlines to tell customers when a flight they 
are about to book a ticket on is chronically delayed or canceled, and 
to provide better information about overbooking, frequent flyer 
programs, and lost baggage. The bill also contains provisions to 
enhance and improve the enforcement of the airlines' customer service 
commitments, such as requirement that each airline incorporate its 
commitments into its binding contract of carriage. Finally, the bill 
calls on the Secretary of Transportation to review existing regulations 
to make sure airlines adhere to their commitments, and to encourage the 
establishment of a baseline standard of service for all airlines.
  The provisions of this bill are not radical, nor are they regulatory; 
they are basic reasonable steps based directly on the specific findings 
and recommendations of the Inspector General. Most importantly, they 
would create meaningful, enforceable protections for consumers in the 
areas where the Inspector General has identified ongoing problems.
  I am hopeful that my colleagues here in the Senate will join me in 
supporting this legislation, and I ask unanimous consent that the text 
of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 483

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Fair Treatment of Airline 
     Passengers Act''.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) United States airline traffic is increasing. The number 
     of domestic passengers carried by United States air carriers 
     has nearly tripled since 1978, to over 660 million annually. 
     The number is expected to grow to more than 1 billion by 
     2010. The number of domestic flights has been steadily 
     increasing as well.
       (2) The Inspector General of the Department of 
     Transporation has found that with this growth in traffic have 
     come increases in delays, cancellations, and customer 
     dissatisfaction with air carrier service.
       (A) The Federal Aviation Administration has reported that, 
     between 1995 and 2000, delays increased 90 percent and 
     cancellations increased 104 percent. In 2000, over 1 in 4 
     flights were delayed, canceled, or diverted, affecting 
     approximately 163 million passengers.
       (B) At the 30 largest United States airports, the number of 
     flights with taxi-out times of 1 hour or more increased 165 
     percent between 1995 and 2000. The number of flights with 
     taxi-out times of 4 hours or more increased 341 percent 
     during the same period.
       (C) Certain flights, particularly those scheduled during 
     peak periods at the nation's busiest airports, are subject to 
     chronic delays. In December, 2000, 626 regularly-scheduled 
     flights arrived late 70 percent of the time or more, as 
     reported by the Department of Transportation.
       (D) Consumer complaints filed with the Department of 
     Transportation about airline travel have nearly quadrupled 
     since 1995. The Department of Transportation Inspector 
     General has estimated that air carriers receive between 100 
     and 400 complaints for every complaint filed with the 
     Department of Transportation.
       (3) At the same time as the number of complaints about 
     airline travel has increased, the resources devoted to 
     Department of Transportation handling of such complaints have 
     declined sharply. The Department of Transportation Inspector 
     General has reported that the staffing of the Department of 
     Transportation office responsible for handling airline 
     customer service complaints declined from 40 in 1985 to just 
     17 in 2000.
       (4) In June, 1999, the Air Transport Association and its 
     member airlines agreed to an Airline Customer Service 
     Commitment designed to address mounting consumer 
     dissatisfaction and improve customer service in the industry.
       (5) The Department of Transportation Inspector General has 
     reviewed the airlines' implementation of the Airline Customer 
     Service Commitment. The Inspector General found that:
       (A) The Airline Customer Service Commitment has prompted 
     air carriers to address consumer concerns in many areas, 
     resulting in positive changes in how air travelers are 
     treated.
       (B) Despite this progress, there continue to be significant 
     shortfalls in reliable and timely communication with 
     passengers about flight delays and cancellations. Reports to 
     passengers about flight status are frequently untimely, 
     incomplete, or unreliable.
       (C) Air carriers need to do more, in the areas under their 
     control, to reduce over-scheduling, the number of 
     chronically-late or canceled flights, and the amount of 
     checked baggage that does not show up with the passenger upon 
     arrival.
       (D) A number of further steps could be taken to improve the 
     effectiveness and enforceability of the Airline Customer 
     Service Commitment and to improve the consumer protections 
     available to commercial air passengers.

     SEC. 3. FAIR TREATMENT OF AIRLINE PASSENGERS.

       (a) In General.--Subchapter I of chapter 417 of title 49, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec.  41722. Airline passengers' right to know

       ``(a) Disclosure of On-time Performance.--Whenever any 
     person contacts an air carrier to make a reservation or to 
     purchase a ticket on a consistently-delayed or canceled 
     flight, the air carrier shall disclose (without being 
     requested), at the time the reservation or purchase is 
     requested, the on-time performance and cancellation rate for 
     that flight for the most recent month for which data is 
     available. For purposes of this paragraph, the term 
     `consistently-delayed or canceled flight' means a regularly-
     scheduled flight--
       ``(1) that has failed to arrive on-time (as defined in 
     section 234.2 of title 14, Code of Federal Regulations) at 
     least 40 percent of the time during the most recent 3-month 
     period for which data are available; or
       ``(2) at least 20 percent of the departures of which have 
     been canceled during the most recent 3-month period for which 
     data are available.
       ``(b) On-time Performance Posted on Website.--An air 
     carrier that has a website on the Internet shall include in 
     the information posted about each flight operated by that air 
     carrier the flight's on-time performance (as defined in 
     section 234.2 of title 14, Code of Federal Regulations) for 
     the most recent month for which data is available.
       ``(c) Passenger Information Concerning Delays, 
     Cancellations, and Diversions.--
       ``(1) In general--Whenever a flight is delayed, canceled, 
     or diverted, the air carrier operating that flight shall 
     provide to customers at the airport and on board the 
     aircraft, in a timely, reasonable, and truthful manner, the 
     best available information regarding such delay, 
     cancellation, or diversion, including--
       ``(A) the cause of the delay, cancellation, or diversion; 
     and
       ``(B) in the case of a delayed flight, the carrier's best 
     estimate of the departure time.
       ``(2) Public information.--An air carrier that provides a 
     telephone number or website for the public to obtain flight 
     status information shall ensure that the information provided 
     via such telephone number or website will reflect the best 
     and most current information available concerning delays, 
     cancellations, and diversions.
       ``(d) Pre-departure Notification System.--Within 6 months 
     after the date of enactment of the Fair Treatment of Airline 
     Passengers Act, each air carrier that is a reporting carrier 
     (as defined in section 234.2 of title 14, Code of Federal 
     Regulations) shall establish a reasonable system (taking into 
     account the size, financial condition, and cost structure of 
     the air carrier) for notifying passengers before their 
     arrival at the airport when the air carrier knows 
     sufficiently in advance of the check-in time for their flight 
     that the flight will be canceled or delayed by an hour or 
     more.
       ``(e) Coordination of Monitors; Current Information.--At 
     any airport at which the status of flights to or from that 
     airport is displayed to the public on flight status monitors 
     operated by the airport, each air carrier the flights of 
     which are displayed on the monitors shall work closely with 
     the airport to ensure that flight information shown on the 
     monitors reflects the best and most current information 
     available.
       ``(f) Frequent Flyer Program Information.--Within 6 months 
     after the date of enactment of the Fair Treatment of Airline 
     Passengers Act, each air carrier that maintains a frequent 
     flyer program shall increase

[[Page S1994]]

     the comprehensiveness and accessibility to the public of its 
     reporting of frequent flyer award redemption information. The 
     information reported shall include--
       ``(1) the percentage of successful redemptions of requested 
     frequent flyer awards for free tickets or class-of-service 
     upgrades for the air carrier;
       ``(2) the percentage of successful redemptions of requested 
     frequent flyer awards for free tickets or class-of-service 
     upgrades for each flight in the air carrier's top 100 
     origination and destination markets; and
       ``(3) the percentage of seats available for frequent flyer 
     awards on each flight in its top 100 origination and 
     destination markets.
       ``(g) Overbooking.--
       ``(1) Oversold flight disclosure.--An air carrier shall 
     inform a ticketed passenger, upon request, whether the flight 
     on which the passenger is ticketed is oversold.
       ``(2) Bumping compensation information.--An air carrier 
     shall inform passengers on a flight what the air carrier will 
     pay passengers involuntarily denied boarding before making 
     offers to passengers to induce them voluntarily to relinquish 
     seats.
       ``(3) Disclosure of bumping policy.--An air carrier shall 
     disclose, both on its Internet website, if any, and on its 
     ticket jackets, its criteria for determining which passengers 
     will be involuntarily denied boarding on an oversold flight 
     and its procedures for offering compensation to passengers 
     voluntarily or involuntarily denied boarding on an oversold 
     flight.
       ``(h) Mishandled Baggage Reporting.--Within 6 months after 
     the date of enactment of the Fair Treatment of Airline 
     Passengers Act, each air carrier shall revise its reporting 
     for mishandled baggage to show--
       ``(1) the percentage of checked baggage that is mishandled 
     during a reporting period;
       ``(2) the number of mishandled bags during a reporting 
     period; and
       ``(3) the average length of time between the receipt of a 
     passenger's claim for missing baggage and the delivery of the 
     bag to the passenger.
       ``(i) Small Air Carrier Exception.--This section does not 
     apply to an air carrier that operates no civil aircraft 
     designed to have a maximum passenger seating capacity of more 
     than 30 passengers.

     ``Sec.  41723. Enforcement and enhancement of airline 
       passenger service commitments

       ``(a) Adoption of Customer Service Plan.--Within 6 months 
     after the date of enactment of the Fair Treatment of Airline 
     Passengers Act, an air carrier certificated under section 
     41102 that has not already done so shall--
       ``(1) develop and adopt a customer service plan designed to 
     implement the provisions of the Airline Customer Service 
     Commitment executed by the Air Transport Association and 14 
     of its member airlines on June 17, 1999;
       ``(2) incorporate its customer service plan in its contract 
     of carriage;
       ``(3) incorporate the provisions of that Commitment if, and 
     to the extent that those provisions are more specific than, 
     or relate to issues not covered by, its customer service 
     plan;
       ``(4) submit a copy of its customer service plan to the 
     Secretary of Transportation;
       ``(5) post a copy of its contract of carriage on its 
     Internet website, if any; and
       ``(6) notify all ticketed customers, either at the time a 
     ticket is purchased or on a printed itinerary provided to the 
     customer, that the contract of carriage is available upon 
     request or on the air carrier's website.
       ``(b) Modifications.--Any modification in any air carrier's 
     customer service plan shall be promptly incorporated in its 
     contract of carriage, submitted to the Secretary, and posted 
     on its website.
       ``(c) Quality Assurance and Performance Measurement 
     System.--
       ``(1) Air carriers.--Within 6 months after the date of 
     enactment of the Fair Treatment of Airline Passengers Act, an 
     air carrier certificated under section 41102, after 
     consultation with the Inspector General of the Department of 
     Transportation, shall--
       ``(A) establish a quality assurance and performance 
     measurement system for customer service; and
       ``(B) establish an internal audit process to measure 
     compliance with its customer service plan.
       ``(2) DOT approval required.--Each air carrier shall submit 
     the measurement system established under paragraph (1)(A) and 
     the audit process established under paragraph (1)(B) to the 
     Secretary of Transportation for review and approval.
       ``(d) Customer Service Plan Enhancements.--Within 6 months 
     after the date of enactment of the Fair Treatment of Airline 
     Passengers Act, an air carrier certificated under section 
     41102 shall--
       ``(1) amend its customer service plan to specify that it 
     will offer to a customer purchasing a ticket at any of the 
     air carrier's ticket offices or airport ticket service 
     counters the lowest fare available for which that customer is 
     eligible; and
       ``(2) establish performance goals designed to minimize 
     incidents of mishandled baggage.
       ``(e) Small Air Carrier Exception.--This section does not 
     apply to an air carrier that operates no civil aircraft 
     designed to have a maximum passenger seating capacity of more 
     than 30 passengers.''.
       (b) Civil Penalty.--Section 46301(a)(7) is amended by 
     striking ``40127 or 41712'' and inserting ``40127, 41712, 
     41722, or 41723''.
       (c) Conforming Amendment.--The chapter analysis for chapter 
     417 of title 49, United States Code, is amended by inserting 
     after the item relating to section 41721 the following:

``41722. Airline passengers' right to know
``41723. Enforcement and enhancement of airline passenger service 
              commitments''.

     SEC. 4. REQUIRED ACTION BY SECRETARY OF TRANSPORTATION.

       (a) Uniform Minimum Check-in Time; Baggage Statistics; 
     Bumping Compensation.--Within 6 months after the date of 
     enactment of this Act, the Secretary of Transportation 
     shall--
       (1) establish a uniform check-in deadline and require air 
     carriers to disclose, both in their contracts of carriage and 
     on ticket jackets, their policies on how those deadlines 
     apply to passengers making connections;
       (2) revise the Department of Transportation's method for 
     calculating and reporting the rate of mishandled baggage for 
     air carriers to reflect the reporting requirements of section 
     41722(h) of title 49, United States Code; and
       (3) revise the Department of Transportation's Regulation 
     (14 C.F.R. 250.5) governing the amount of denied boarding 
     compensation for passengers denied boarding involuntarily to 
     increase the maximum amount thereof.
       (b) Review of Regulations.--
       (1) In general.--Within 1 year after the date of enactment 
     of this Act, the Secretary shall complete a thorough review 
     of the Department of Transportation's regulations that relate 
     to air carriers' treatment of customers, and make such 
     modifications as may be necessary or appropriate to ensure 
     the enforceability of those regulations and the provisions of 
     this Act and of title 49, United States Code, that relate to 
     such treatment, or otherwise to promote the purposes of this 
     Act.
       (2) Specific areas of review.--As part of such review and 
     modification, the Secretary shall, to the extent necessary or 
     appropriate--
       (A) modify existing regulations to reflect this Act and 
     sections 41722 and 41723 of title 49, United States Code;
       (B) modify existing regulations to the extent necessary to 
     ensure that they are sufficiently clear and specific to be 
     enforceable;
       (C) establish minimum standards, compliance with which can 
     be measured quantitatively, of air carrier performance with 
     respect to customer service issues addressed by the 
     Department of Transportation regulations or the Airline 
     Customer Service Commitment executed by the Air Transport 
     Association and 14 of its member airlines on June 17, 1999;
       (D) address the manner in which the Department of 
     Transportation regulations should treat customer service 
     commitments that relate to actions occurring prior to the 
     purchase of a ticket, such as the commitment to offer the 
     lowest available fare, and whether such the inclusion of such 
     commitments in the contract of carriage creates an 
     enforceable obligation prior to the purchase of a ticket;
       (E) restrict the ability of air carriers to include 
     provisions in the contract of carriage restricting a 
     passenger's choice of forum in the event of a legal dispute; 
     and
       (F) require each air carrier to report information to 
     Department of Transportation on complaints submitted to the 
     air carrier, and modify the reporting of complaints in the 
     Department of Transportation's monthly customer service 
     reports, so those reports will reflect complaints submitted 
     to air carriers as well as complaints submitted to the 
     Department.
       (3) Expedited procedure.--Within 1 year after the date of 
     enactment of this Act, the Secretary shall complete all 
     actions necessary to establish regulations to implement the 
     requirements of this subsection.

     SEC. 5. IMPROVED ENFORCEMENT OF AIR PASSENGER RIGHTS.

       (a) Use of Authorized Funds.--In utilizing the funds 
     authorized by section 223 of the Wendell H. Ford Aviation 
     Investment and Reform Act for the 21st Century for the 
     purpose of enforcing the rights of air travelers, the 
     Secretary of Transportation shall give priority to the areas 
     identified by the Inspector General of the Department of 
     Transportation as needing improvement in Report No. AV-2001-
     020, submitted to the Congress on February 12, 2001.
       (b) Secretary Required To Consult the Secretary's Inspector 
     General.--The Secretary of Transportation, in carrying out 
     this Act and the provisions of section 41722 and 41723 of 
     title 49, United States Code, shall consult with the 
     Inspector General of the Department of Transportation.
                                 ______