What's the book corporate America doesn't want you to read? Find out now -- or you could get scammed.

New rule: 3 travel policies that should be revived

May 24, 2009

Fumiko Seguchi did everything by the book on her recent flight to Tokyo. She confirmed her departure 24 hours in advance. She secured a seat assignment. And she arrived more than two hours before departure.

But Seguchi, who was visiting a friend in Orlando, couldn’t have anticipated the long check-in lines at the airport. “There were only a few ticket agents at the counter, so the line went on forever,” says Fran Mingle, Seguchi’s friend. “She waited and waited. After getting concerned about missing her flight because of the inordinate delay, she asked if she could be accommodated next but the American Airlines personnel told her ‘no’.”

Seguchi missed her flight and was asked to pay an extra $2,600 for a ticket the next day. American had thrown the book in her face.

If this had happened a decade ago, Seguchi probably wouldn’t have paid an extra dime. Airlines had what’s known as a “flat tire” rule that allowed passengers who were delayed because of circumstances beyond their control to be rebooked on the next flight at no additional charge. But like many of the travel industry’s customer-friendly policies, the “flat tire” rule was quietly dropped after 9/11 in an effort to raise revenues. Compassion went out the cabin door.

Maybe it’s time to bring back some of these rules.

I asked American if it might revive its rule for Seguchi, as an exception. After some negotiations, and a frantic call to her travel agent in Japan, she was allowed to fly back to Japan for a nominal change fee. American sent her a $200 travel voucher for her trouble, but defended the practice of charging passengers for a missed flight. “While we make every effort to ensure there are enough agents staffing our ticket counters, it is not always possible to forecast the number of customers who will need assistance — especially when unexpected circumstances cause long lines,” said airline spokeswoman Andrea Huguely.

Which policies ought to be revived? Here are three worth considering:

The flat tire rule
Getting rid of the “flat tire” rule was an incredibly profitable mistake. Not only because it’s unfair, but also because it formalizes a double standard. Passengers like Seguchi are expected to give airlines a break when there’s bad weather, an air traffic control problem or a mechanical delay. But when air travelers can’t make their flight for reasons completely beyond their control, airlines often insist on sticking it to them for a full walk-up fare. That’s what Northwest Airlines did when Jeremy Gaisin’s car ran out of gas and he missed a flight from Minneapolis to Amsterdam recently. It charged an extra $1,400, but generously agreed to waive a $250 change fee. He tried to appeal to an executive, but “the agent was saying they would not speak to me,” he says.

Too bad his flight wasn’t on Southwest. It still has an informal “flat tire” rule, according to customers. (I asked Southwest, and a spokeswoman told me “we do empower our employees to handle each situation on a case-by-case basis,” and added, “Is that ambiguous enough for you?” Um, yes.)

Grace period for car rentals
A few years ago, in an effort to make more money, car rental companies tightened their grace periods for late-arriving customers. A reasonable one-hour window was abbreviated to half and hour and in some cases, closed entirely. That meant many customers would have to pay late penalties ranging from an extra hour billed at the company’s highest rate, to an extra day. Take Richard Gordon, a small-business consultant who lives in York, Pa., who rents a car several times a week. “I’m renting a car from Hertz today, and it’s going to cost an extra $98,” he told me.

Why should car rental companies become more generous, particularly at a time like this, when their earnings are on the verge of a breakdown? The answer is simple: We cut car rental companies a lot of slack when they’re understaffed or have run out of cars. I waited almost an hour for my last car, but I didn’t complain and certainly didn’t try to pay less for the car. But the company wouldn’t have hesitated to charge extra if I brought its vehicle back only a few minutes late. Seems a little unfair, doesn’t it?

The real Rule 240
“I’d like to see them bring back Rule 240,” says travel agent Sylva Frommer-Mracky. “The true 240.” Ah, wouldn’t that be nice? But who knew that the Rule 240 being used today was a fake? The original Rule 240, which outlined what carriers would do for passengers whose flights were delayed or canceled, was part of the airlines’ tariff rule — its legal contract — before the airline industry was thoughtlessly deregulated during the Carter administration. “Such services often included things like meals, phone calls, or endorsing the ticket over to another carrier at no additional charge to the passenger,” says Bill Mosley, a spokesman for the Transportation Department.

Even after deregulation, airline agents continued to write “Rule 240” on tickets when rerouting a passenger. But airlines weren’t required to comply with the old 240, and did so only as a way of staying competitive. The government required airlines to follow their contracts, but didn’t mandate a Rule 240. “A passenger’s entitlement to Rule 240-style services depends on what might be specified in that particular carrier’s contract of carriage, not on any single industry-wide rule or standard,” adds Mosley. I don’t know of any sane airline expert who would oppose the return of a real Rule 240.

Some of these rules are already in effect, but you have to travel a fair distance to experience them. For example, Europe’s Rule 261/2004 offers Rule 240-like protections for air travelers. Other countries have strong laws that prevent companies from imposing predatory rules on their citizens, which, come to think of it, would be a nice thing for travelers in the United States.

It would be even better if travel companies would revive these rules on their own, for no other reason than that it’s the right thing to do. The money earned from customers who couldn’t make their flight, were caught in traffic on their way back to the car rental location or had the misfortune of being on a plane with an operational delay, is insignificant compared with the revenues companies will lose when their customers decide to stop doing business with them.

And that day will come soon.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

18 comments

  • Josh

    Here’s the deal — the first example shouldn’t even be a “flat tire rule” situation — it is *entirely* within the airline’s control.

    Traffic on the highway, a real flat tire, sick kid, etc etc, are all things reasonable to expect customers to be semi-accountable for — even then, basic accomadation (standby on next flight, next day, etc for no charge) should be provided, just as we customers are expected to be flexible for minor delays on the airline’s side.

    But staffing at the airline checkin? NO WAY — The airline specifies a time to arrive at the airport. If I arrive at the back of the line at that time, I’ve fulfilled my obligation, and it is ENTIRELY their job to get me checked in, boarded, and on my way. Refusing to check me in (with whatever excuse they give, whether it’s staffing, computer failure, or overbooking) should be compensated as an Involuntary Denied Boarding. Not treated as a missed flight to pay exorbitant walk-up fares for.

    How the heck is the customer supposed to know how the airline is going to choose to staff their counter? What prevents them from delaying checkin to avoid “bumping” passengers?

    I’m tired of companies distancing themselves from things that are truly under their control — weather, fire, maybe ATC delays are not. Checkin lines and strikes by *their own employees* are. It’s time to hold them accountable and get some clear consumer protection in place.

  • Parker Phillips

    We used to travel by air and rent cars a lot since we retired 7 years ago (and a number of times before that). With all that is happening when your try and fly, rent a car and a hotel/motel room we have decided to drive when possible. A few weeks ago we wanted to spend a week roaming around the Gulf Coast area of the FL panhandle and rather than put up with airlines and rental car “situations” we drove even though it was a 15 hour drive, from southern Pa, to get to where we wanted to be to begin enjoying the “vacation”. This also allowed us to take whatever bags we wanted with no extra charge, carry our own water and soft drink and not pay inflated prices for those or food at the airports. We also did not have to put up with long check in lines or long security lines and were able to keep our shoes on. When we arrived at our destination our bags were right there with us, undamaged, and no one had gone through them. This coming Sept. we plan on revisiting ME and a bit of Canada and will take the long, initial drive from southern PA to get there rather than, again, go through the “fun” flying and car rental situations. If more people are able to do this maybe (don’t hang your hat on it) the airlines and car rental places might begin to wake up.

  • Carrie Charney

    I don’t know if this would have benefited Ms. Seguchi, but I always try to arrive at least 3 hours early for an international flight.

  • RegularGuy

    How is running out of gas a circumstance “completely beyond [one's] control?” Most cars these days have this nifty little gadget that lets the driver know exactly how much gas he has left in his tank.

    “couldn’t have anticipated the long check-in lines at the airport” — really? Has she not been in an airport recently? ever? Again .. NOT beyond her control.

  • Josh

    Re: Regularguy

    I agree about running out of gas — that is generally the driver’s fault (that’s one reason I never take the “purchase the tank” rental option; it’s too tempting to try to return completely empty). Although again, we give the airline some leeway for delayed/cancelled/misconnecting flights, so I think a little low-cost-to-them accomodation is appropriate.

    But checkin lines? Of course everyone knows there will be a line, but *how long* varies greatly — Most of the time, there’s no more than 5-10 minutes delay at many airports; how exactly am I supposed to know that they’re short-staffed on a particular day and it’ll be 3 hours? Am I supposed to show up 6 hours early, just in case? Just pick a time and let people build that into their schedules (and if airline A says be there 3 hours early, and B says 2 hours early, people can build that into their price/convenience shopping).

    The airline completely controls the throughput of those lines — the number of agents and how efficient each checkin is (remember the old days when even a standard checkin on a paper ticket resulted in 2-3 minutes of furious typing? That’s gotten a bit better now, but sometimes you get stuck behind others with weird problems)

    Just tell me when to show up at the airport and I’ll be there (and take responsibility for anything up to then); after that IMHO it’s the airline’s job to get me where I’m going…

  • http://Travel-Writers-Exchange.com Travel-Writers-Exchange.com

    Wow! And the TRUTH is finally revealed. I had no idea about the “240 Rule or the Flat Tire Rule.” All these rules just to travel. Nice! Who knew that the Flat Tire Rule was dropped after 9/11? It makes sense because people were paranoid about flying. FYI: you may want to arrive 2 1/2 – 3 hours for an international flight. Yeah, it sucks but if you want to make you’re flight — do it!

    Running gas is a driver’s fault…if you’re going towards empty, find a gas station. It’s a shame that responsible travelers are punished because of their fellow travelers.

  • Mort B

    RegularGuy is dead wrong on this one. American Airlines should have moved Ms. Seguchi to the head of the line when she requested it so as not to miss her flight, or else they should have delayed the departure of her flight until all passengers who were there had been checked-in. AA is entirely to blame in this situation.

  • Judith

    My daughter missed her connection in Madrid going to Sevilla and was stuck in the airport for 12 hours. When I called to request that she be re-scheduled to give her enough time on the return flight they said only 1.5 hours is required and wanted a $200 fee. They also wanted specifics on why she had missed the flight.

  • Christina

    “Too bad his flight wasn’t on Southwest.” His flight to Amsterdam? Really? Last time I checked, Southwest didn’t fly to Europe. Maybe it’s too bad that in order to fly internationally, we are forced to choose a carrier that couldn’t care less about its passengers.

  • Steve Rabin

    In response to Carrie:

    It wasn’t an int’l flight–flying from Orlando on AA would be domestic to Chicago or Dallas or somewhere else. She did exactly what she was supposed to do. This one was AA’s screw-up. They should have let her jump the line.

    I’m a regular United passenger, and at busy times at airports like SFO, the agents often ask “is anyone going to such-and-such city” when the time grows near and moving those folks forward (or opening an another line if possible). This is the way it should be–it’s just good business.

  • Chicky

    Or, if at ALL possible, check in online the night before and print your boarding passes! I don’t know if this is possible on international flights such as Ms. Seguchi’s, but it’s worth trying to find the business center of a hotel or a local library to try to do this, if you can. That way, you go straight through to security. I think this even works if you have bags to check. It’s worth it to pay even $10 for the privilege of printing out boarding passes to avoid the check-in lines.

    However, airlines and rental companies should certainly have a little wiggle room built into their rules. Some things are completely beyond a passenger’s control. Ms. Seguchi was at the airport on time, doing what she was supposed to do. AA took shameful advantage of her and should have allowed her to go ahead and check in.

    P.S. If online check in won’t work and the airline provides the little e-kiosks, USE THEM! If you don’t have changes to make to your ticket, you’ll still get through in about a third of the time versus standing in line.

  • Sevenseat

    I have see a lot of comments about how Ms. Seguchi should have done something different, but it seems she followed the rules and still got shafted.

    First of all, even domestic segments of international itineraries are considered international and you have to show your passport when checking in, I just experienced that a couple of weeks ago. I could not check in online, even for the 45 minute flight to Newark. Online check in is often not available for international flights, or you can only check in so far, and then still have to stand in line to show your passport to a person before you can get a boarding pass. I only fly internationally three or four times a year, and this seems to be different every time. The one nice part of this rule is that the international rules on compensation for lost baggage apply to even the domestic segments.

    This case is completely American’s fault for not having enough staff to check in the flight, especially since they know how many people are on that flight, how many have printed out boarding passes early, and how many are or are not US citizens. There is no way we as travelers can know how long the lines are going to be at an airport, especially a strange airport, so we follow the guidelines that the airlines have given us and show up two hours early. Should we now show up three, four, five hours early just in case American didn’t feel like paying some employees and is understaffed? While she should have spoken up, or been on the phone to American’s customer service from the line, this is entirely American’s fault.

    Now, for the rental car question. If I rent a movie and they tell me that it has to be back by noon or I get charged for an extra day, I have it back by noon or I pay for the extra day. This is much more within the control of the customer than the airline issue.

    Ah, rule 240. There seems to be a lot of nostalgia for it, but that era seems to have gone the way of white wall tires and native English speaking call center operators. I would be happy with having one set of rules to follow for all airlines, but that too is probably wishful thinking.

  • Mark

    I believe Josh (especially in his second post) has hit this on the head. Provided I arrive at the airport and am engaged in the check-in process according to the guidelines that the airline and TSA provide for that airport and time of day/week, it is reasonable to expect that a failure to make my flight is no longer my responsibility–someone (presumably the airline) should accommodate me at their expense. While there are plenty of unexpected things that can happen that are technically “out of your control” that keep you from getting to the airport, I’m not sure that it is reasonable to ask the airline to step to the plate in those circumstances. So, as Josh says, let’s make a deal: Give me a time to show up–if I show up by then and miss my flight, that’s on you. If I don’t, it’s on me. How does it get any more fair than that?

  • Jasper

    I think the flat tire rule and car rental grace period were thrown out of the window by customers themselves. Not all, but those gaming the system. How often have we got up real early to catch an early flight, only to stand in line forever waiting for ‘late’ folks for a flight just a bit earlier. I have literally been laughed in my face by such idiots. “I don’t get up on time, I’m a red carpet member hahaha”.

    I agree with Josh thought that the flat tire rule doesn’t apply in Fumiko’s case. The air line was at fault, not the customer.

    As for rule 240, that should come back immediately. Even if air lines have to pay each other, things should equal out, if they just use empty seats to get people around.

    However, I think that they dropped the rule, because bean counters have been able to define the product that the airline sells narrower and narrower. As a customer, you want to buy transportation from A to B. That’s it. Preferably, you’d like to indicate when you leave and return, but as a customer you understand you depend on the air lines’ flight schedule, so you accept some inconvenience. As a customer you’re also willing to accept some delays, as long as you have the feeling that an air line it trying to get you where you need to be.

    Air lines however, have reduced the product to the sale of a specific seat on a specific flight, at a specific point in time, with a specifically defined luggage allowance, a fluid quota and a little responsibility for any hick-ups that they legally can get away with.

    The gap between the two is what people get angry and frustrated about. Basically, customers can not buy the product they want anymore, while airlines keep telling customers that that’s really not the product they want.

  • Sevenseat

    Jasper has exposed a bigger problem that bringing back Rule 240 may help address. The airlines feel like they have sold you a seat on a specific flight, not transportation from point A to point B. This is very similar to going to a baseball game, if it gets rained out, you may get a seat for another later game, but not the next available game. I think the flying public, especially leisure travelers, feel like flying should be like taking a number at the deli. If I have number 2 and someone else has number 182, they may get to go first because their plane is at the gate while mine is stuck in Syracuse. The problem has become worse and worse as airlines have cut capacity and switched mainline jets for regional carrier props. The hub and spoke system has made it so even large airports are dominated by single carriers.

    Just try to invoke a Rule 240 in Newark when your flight to Rochester is canceled. There are no other carriers for them to put you on. You are better off renting a car.

  • Jennifer (the other one)

    If she arrived more than 2 hours in advance, and still missed the flight due to the long lines, she can’t have been the only one – more than half the passengers would have missed that flight. The one time this happened to me (due to the airline’s computer system crashing), they ended up holding the flight for several hours in order to allow everyone to check in. While that was a problem for those with connections, if they’d insisted on taking off on time, 2/3 of the passengers would have been left behind through no fault of their own. Holding the flight is the only reasonable thing to do in that situation – it seems strange that they didn’t do that here. Something about this story doesn’t add up.

  • Pingback: tripso.com | Missed your flight? Your airline may help — if you know what to ask for

  • http://www.best-car-rental-tips.com Paula

    I think they should reinstate a (minimum) one hour grace period for car rental return. With all the other fees and surcharges on rental cars, renters are being bombarded with extras. One hour ‘s grace is not too much to ask!

Previous post:

Next post: