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Air Travel FAQ...
 
 

How do airlines calculate fares?

Airlines determine the price of most airfares through computer programs that calculate how many passengers are likely to book seats on any given flight. In addition, airlines might offer discount fares to avoid flying with empty seats, and they charge more for flights and schedules that are likely to be used by business travelers. Ticket prices may also be affected by competition with other airlines that offer discounted prices. The result of all of these things is that passengers on the same flight could be paying as many as a dozen different fares.

Where can I find information about the duties that the airline owes to me as a passenger?

The back of all standard airline tickets has at least 11 paragraphs of fine print under the heading "Conditions of Contract." In Paragraph 3, you will generally find a statement that various "applicable tariffs" and the "Carrier's Conditions of Carriage and Related Regulations," are incorporated into the contract. This means that each airline has filed with the U.S. Department of Transportation a series of statements about its obligations to its passengers and its limitations of liability. These tariffs and conditions are the terms of your contract with the airline.

The Conditions of Carriage cover everything from the number of bags you can check to the type of compensation you receive if your flight is delayed or canceled. Boarding priority, check-in requirements and most of the other fine-print terms that describe an airline's responsibilities to its passengers are set forth in the Conditions of Carriage.

Conditions of Carriage vary from airline to airline. Although most airline tickets look identical, the subtle differences in the hidden terms can make a substantial difference in your rights as a passenger. You can obtain a summary of the hidden terms and conditions of most major airlines' contracts by requesting a copy of United States Air Carriers, Conditions of Contract, Summary of Incorporated Terms (Domestic Air Transportation) from the Air Transport Association, Distribution Center, P.O. Box 511, Annapolis, MD, 20701. Enclose a $65 check payable to ATAA. You can also call the ATAA at 800-497-3326.

In what ways is an airline allowed to restrict my airline ticket?

Tickets may have either of the following restrictions:
  • Nontransferable. A nontransferable ticket can be used only by the passenger whose name appears on the face of the ticket. If the names on the passenger's ID and on the ticket do not match, the airline can confiscate the ticket. If a ticket is nontransferable but refundable, however, you may be able to cash in the old ticket and buy a new one with the new passenger's name.
  • Nonrefundable. If you have a nonrefundable ticket, you cannot get your money back if you decide not to travel. But each airline has exceptions. If you cannot make a flight for which you have a nonrefundable ticket, you may be able to apply the ticket toward a future flight or exchange it for credit toward future travel. If the fare has dropped on a flight for which you have a nonrefundable ticket, you may be able to get re-ticketed. In either situation, you will probably have to pay a fee to make the change.

Do airlines offer discounted tickets or let you change a ticket if you need to travel because of death or serious illness?

In certain exceptional cases, the airlines will allow nonrefundable tickets to be refunded if you need to cancel your plans because of the illness or death of your traveling companion or a close relative.

Similarly, an airline may offer a discounted fare (sometimes a minor discount, sometimes a generous discount) when a close relative becomes seriously ill or dies, causing you to travel without any advanced planning. Who must be ill or have died for you to obtain a bereavement fare varies among airlines. For example, some airlines will give a discounted fare to attend the funeral of a parent, child, sibling, spouse or in-laws only, while other airlines include non-marital partners and their immediate family members.

I recently booked an airline reservation and was given an e-ticket instead of a paper ticket. How will this affect me?

E-tickets aren't really tickets at all, but are reservations for air travel that are kept in the airline's computer system instead of being printed on paper like a conventional ticket. If you have an e-ticket, you aren't alone: In 1999, the airline industry estimated that between 40% and 50% of all flight bookings were e-ticket bookings.

If you are booked on a single airline and are flying only in the United States, you will most likely have little trouble using your e-ticket. In fact, you might find that you like the convenience of the e-ticket as compared with a traditional paper ticket. The great value of e-tickets to passengers is that there is no paper ticket to keep track of or to lose. Passengers who have e-tickets just show up at the airport on the appointed date and time. To get a boarding pass for the flight, passengers with e-tickets just hand over a picture ID and the credit card that they used to pay for the ticket. Simple as that.

E-tickets are not foolproof, however. The problems with e-tickets usually arise from the fact that passengers have no actual ticket as proof of their travel reservations. The proof, as they say, is in the pudding, and when the pudding is e-pudding, troubles can occur. Problems most often crop up for international travelers. Many countries require that you show a "ticket" to gain access to a boarding area, and some unlucky passengers have found that showing their receipt and itinerary hasn't been sufficient to get past immigration officers. In addition, some countries require that you present a roundtrip ticket at the point of entry -- they want you to visit, but they don't want you to stay. If you have an e-ticket, you might have trouble convincing officials that you have booked passage out of their country. If you do decide to travel internationally by e-ticket, make sure you have your itinerary and your receipt for the ticket with you.

Another trouble with e-tickets is that airlines do not have access to each others' e-ticket databases. If your flight gets canceled and your airline tries to put you on another airline's flight, it will first have to print a paper ticket for you. This can be a time-consuming process, especially if lots of other passengers are clamoring for the same service.

Similarly, if you book an e-ticket on an airline that gets shut down by a strike, you may be out of luck because other airlines, who might be willing to accept paper tickets issued by your airline, cannot accept e-tickets because they have no way of verifying that the ticket actually exists. If you have an e-ticket and you hear news that a strike is imminent at your airline, exchange your e-ticket for a paper ticket as soon as possible.

What should I do if I lose my airline ticket?

If you purchased a traditional paper ticket and have lost it, contact the airline immediately. You will be required to fill out a lost-ticket application. The airline will either issue a replacement ticket (after you sign an agreement to reimburse the airline for the cost of the replacement ticket if someone successfully uses your lost ticket) or force you to purchase a replacement ticket at the currently available fare (often outrageously expensive because you do not get any advance purchase discounts). In addition, you usually have to pay some sort of service charge or penalty.

After waiting three months to a year, the airline will issue you a refund for the price of your replacement ticket if your lost ticket was not used during that time.

Does the airline have to compensate me if it bumps me off a flight because of overbooking?

If a flight is overbooked, the airline is required to ask passengers to volunteer to take a later flight. Normally, the airline will offer some kind of incentive such as a free domestic or international round-trip ticket. If an insufficient number of passengers volunteer to be bumped from a flight, the airline must begin involuntary bumping. Generally, passengers with the most recent reservations or those who checked in the latest are the first to be bumped.

If you are bumped, you are entitled to compensation if you have a confirmed reservation (your ticket has an "ok" or something similar in the status column) and the scheduled plane has a seating capacity of more than 60 passengers. Even if you meet both of these requirements, the airline might refuse to compensate you if any of the following is true:

  • you did not comply with the airline's ticketing, check-in and reconfirmation requirements
  • you are not acceptable for transportation under the airline's usual rules and practices (for example, you are drunk)
  • the entire flight was canceled
  • a smaller aircraft was substituted for safety or operational reasons
  • you refuse an offer to take a seat in a different section (class) of the aircraft at no extra charge, or
  • the airline offers to place you on another flight or flights scheduled to reach your final destination within one hour of the scheduled arrival of the original flight.

Am I entitled to compensation if my flight is delayed, diverted or canceled?

A flight is considered on time if it arrives at its destination within 15 minutes of the scheduled arrival time. Generally, a 15-minute delay will not affect your schedule very much. Longer delays can have serious consequences, particularly if you cannot make a connecting flight.

If your trip is delayed because of overbooking, the rules discussed in the previous answer apply. If the delay is caused by any other reason, your rights depend on whether it's a domestic or international flight.

  • Domestic flights. Generally, airlines are not obliged to provide any compensation if the delay, diversion or cancellation was caused by factors outside of the airline's control, such as bad weather or air traffic congestion at a particular airport. On the other hand, airlines are required to compensate you for problems deemed to be in their control, such as mechanical difficulties or late-arriving crew members. The offered compensation can vary substantially among airlines. Full-service airlines are likely to offer more generous terms, such as meals, hotels, alternate transportation or even emergency toiletries in the event of an overnight delay, while budget or no-frills airlines may offer little, if any, compensation.
  • International Flights. Recovering damages for an international flight delay is very difficult if the delay was caused by anything other than the airline's overbooking. Under an international treaty called the Warsaw Convention, an airline can escape liability for damages caused by flight delay if it can show that it took all necessary measures to avoid the damage or that it was impossible to take such measures. If your international flight is delayed, you may be able to persuade the airline that it should cover direct costs caused by the delay, such as meal, hotel or telephone expenses. To back up your argument, you can quote Article 19 of the Warsaw Convention which states: "The Carrier shall be liable for damages occasioned by delay in the transportation by air of passengers, baggage or goods."

Am I entitled to compensation from the airline if my baggage is lost or damaged?

The airlines' treatment of baggage is a constant source of passenger complaints. At some point, nearly every airline passenger has waited for what seemed like an eternity for his or her baggage to show up on the baggage carousel.

To be fair, most of the time baggage does arrive in good shape on the same flight that you were on. When your luggage is damaged, delayed or lost, however, the results can be disastrous. The best way to protect yourself from the most serious losses is to follow one simple rule: Never put anything valuable or irreplaceable (such as jewelry), or that you might urgently need (such as medications), in checked baggage. Your compensation will rarely cover your actual loss.

If your baggage is lost or destroyed, the compensation that the airline owes you depends on whether you were flying on a domestic or international flight.
  • Domestic flights. An airline can limit the amount it must pay if baggage is lost, damaged or delayed to $1,250 per passenger. You can get around this limit by declaring at check-in a higher value for the baggage, up to the airline's maximum, which is likely to be between $2,500 and $5,000. If you declare a higher value, the airline will charge you a fee based on a percentage of the declared value. The airline then becomes liable up to the declared value if it loses, damages or delays delivery of the baggage, unless the airline can prove that the actual loss was lower than the declared value.
  • International flights. The Warsaw Convention provides the rules that determine the liability for lost, delayed or damaged baggage. Unfortunately, these rules will not work to your advantage. Damages are calculated based on the weight of the baggage, regardless of the real value of the baggage or its contents. The Warsaw Convention states that the value for lost or damaged baggage is $9.07 per pound (or $20 per kilogram). If your bag was weighed before the flight, then the value is determined by multiplying the weight of the bag times $9.07. For example, a 20-pound bag would be valued at $181.40. If your bags were not weighed, the airline will generally assume that all of your bags weighed a total of 70 pounds, and will reimburse you $634.90.

To add insult to injury, an airline can completely avoid responsibility for lost or damaged baggage if it can prove that the damage was caused by error in piloting, in the handling of the aircraft or in navigation, and that, in all other respects, the airline and its agents took all necessary measures to avoid the damage.

Are there any legal protections for the credits I earn in a frequent flyer program?

While frequent flyer programs can provide you with some travel bargains, understand that there are few legal protections for the credits you earn. Under the rules of almost all frequent flyer programs, the airline can change award levels, have credits expire or even cancel the whole program without warning.

Does it pay to belong to more than one frequent flyer program?

Some travelers who belong to only one frequent flyer program will pay more for a ticket or will take an indirect or inconvenient flight on an airline just to get frequent flyer credit. One way to avoid this frequent flyer trap is to join more than one program. Although you can get travel awards faster by concentrating your travel on one airline, you may get better fares and connections if you don't restrict yourself to one airline. When you compare tickets, keep in mind that frequent flyer miles are worth approximately 2¢ per mile; use that figure to help calculate which option is best. The 2¢ per mile estimate was calculated by dividing the average cost of a domestic round trip ticket (approximately $500) by the number of frequent flyer miles needed for such a ticket (25,000 miles).

Can I trade or sell my frequent flyer awards?

You can use your frequent flyer awards or give them to anyone you choose, but you cannot sell or trade them.

I have a ticket on an airline that seems headed for bankruptcy. What can I do?

When an airline goes bankrupt, you technically become one of the airline's creditors in bankruptcy. If you file a claim in the bankruptcy court, there is a chance you will recover some very small percentage of the value of the ticket, but more likely you will recover nothing at all.

In the past, most airlines would honor a bankrupt airline's ticket and allow you on a substitute flight. But these days, given the competitive nature of the airline industry, this is rarely done. Sometimes, as a gesture of good will (and a way of luring new customers), an airline will offer a special discounted fare for passengers holding tickets on a bankrupt airline. If you have a ticket on a bankrupt airline and are a frequent flyer on another airline, try to negotiate free or discounted travel using the bankrupt airline's ticket. Trip cancellation or trip interruption insurance can sometimes cover the cost of a replacement ticket.

If you have an e-ticket, run fast to the nearest ticket counter for your airline and exchange it for a paper ticket. Any airline nice enough to accept passengers from a bankrupt airline will only accept those passengers with paper tickets.

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