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The US Department of Transportation (DoT) has been talking tough about consumer regulation as it relates to the aviation industry recently. However, a couple of recent fines show that the DoT is serious about enforcing regulation. This is a very good message to send to airlines. At the same time, the size of the fines are miniscule, and likely will have a negligible impact to the airline.
The DoT’s fines were for a multitude of reasons. The most common reason for fines was violations of internet advertising rules – which will be strengthened in the new rules that take effect this week. Asiana Airlines, Icelandair, and LOT Polish all were fined $70,000, $50,000, and $60,000 respectively for not disclosing taxes and fees properly. Alitalia Airlines was also fined $80,000 for underpaying compensation for lost or delayed baggage.
The thing to note is that these fines are tiny. These fines are less than the cost of fueling an aircraft, an expense airlines deal with many times daily.
If the DoT wants to be serious and “get tough” about airlines flaunting these rules, they need to make the penalties tougher. Hopefully that will happen soon.
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