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Airline Passengers Rights—What is needed now 

By Paul Hudson, Executive Director, Aviation Consumer Action Project (ACAP)

& Kate Hanni, Director, FlyersRights.org (fka Coalition for an Airline Passengers Bill 

of Rights (CAPBOR)) 6/6/12

Stranding & Flight Delays

For many decades by far the largest number of consumer complaints to the DOT has

involved flight delays. Starting in 1980, each decade has seen air travel times 

increase and excessive flight delays become more prevalent. 

The airlines generally blame air traffic control and weather, but this rings hollow 

when the particulars are examined. At times up to one third of flights are now 

delayed, and the figure is always over 10%. 

Prior to the enactment of the Airline Deregulation Act of 1978 (ADA), air travel times 

decreased in each decade and reliability improved. Airlines were regulated by the 

Civil Aeronautics Board (CAB) which approved flight schedules, air fares, conditions

and standards of service. The Federal Aviation Administration (FAA) controlled the 

number of flights at major airports which prevented congestion and operated the air 

traffic control system directly. Also, aircraft were placed in service each decade that 

were faster, more reliable, flight crews were better paid, and had arguably higher 

standards of training and experience. Finally, airport capacity increases and 

additions in the 1950s through the 1960s kept up with increased air traffic. 

Since 1978, there has been no net increase in major US airports, so the skies

around major cities such as New York and Chicago, whose need for an additional 

airport have been blocked by entrenched special interests, have become more and 

more congested. Deregulated airlines have discontinued the use of wide bodied jets 

carrying up to 500 passengers in favor of more frequent flights with narrow bodied 

airliners and regional jets carrying 20 to 140 passengers, thereby negating the 

principal strategy for increasing airport capacity. Airport authorities enjoy 

exemptions from most antitrust law and lack any significant representation of airline 

passenger consumer interests, so that they are permitted to and regularly do engage 

in anticompetitive behavior that drives up air travel costs and increases air travel 

delays and passenger inconvenience. (1) 

Regulations requiring minimum reserve capacity of equipment and flight crews have 

been allowed to lapse. So have rules that allowed passengers on a significantly 

delayed or canceled flight to use their ticket on another airline’s flight at no 

additional cost (known as Rule 240 or reciprocity rule), and as have regulations 

requiring other airlines to honor a bankrupt airlines tickets. 

Flight delays since 1980 of over one hour have increased dramatically. This situation 

not only inconveniences, stresses and results in hardship for airline passengers, but 

also burdens airlines and the economy. The US economy depends on safe, 

convenient, relatively low cost air travel as the primary means of long distance 

transportation. (2)

Tarmac Delays and Confinements
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In 2007, it was discovered and proven by CAPBOR and ACAP that stranding and 

involuntary confinement on the tarmac was far more prevalent than previously 

thought based on a few publicized incidents. It was admitted in June 2007 by the 

DOT Bureau of Transportation Statistics (BTS) that airlines were not reporting and 

BTS was not requiring them to report most long on ground delays, delays for 

diverted flights, cancelled flights and multiple gate return flights were “lost in space” 

not reported for time on the tarmac. New regulations were adopted and the first 

report for October 2008 showed over 50 flights (which would imply 120,000 

passengers per year) were delayed on the ground over 3 hours though some 

analysts believe even those statistics greatly underreported these delays.

There was a strong financial incentive that the flight crews had to pull away from the 

gate (and not go back) even if they knew the flight is not taking off for a long time, if 

at all. Nearly all airlines only pay flight attendants & pilots their full wages from the 

time that the cabin door closes, and some pay nothing for time spent with the 

aircraft at the terminal gate.

ACAP, Flyers Rights (fka Coalition for a Passengers Bill of Rights (CAPBOR)), Public 

Citizen, Consumers Union, US PIRGs, New York and several other state 

governments, the Business Travel Coalition and even some former airline executives 

all supported a 3 hour rule to give passengers the opportunity to deplane if a flight is 

delayed more than 2-3 hours and to require that water, food, and sanitary facilities 

be provided. 

The DOT in 2009 took major steps to reduce delays caused by congestion by 

enacting regulations that discouraged over scheduling of flight times. By enacting a 

version of Truth in Scheduling that ACAP had long advocated, there has been a 

major reduction in chronically delayed flights and virtually elimination of deceptively 

scheduled flights. Airlines had previously had a financial incentive to schedule take 

offs and landings at the most popular times at major airports far in excess of airport 

capacity and then blame delays on air traffic control or weather. Now they must 

disclose on time statistics for their flights to the public, explain to the DOT 

chronically late flights and eliminate deceptively scheduled flights.

Increases in flight cancellations predicted by the airlines if the 3 hour rule was 

enacted did not materialize, but the flight delays did decline and lengthy tarmac 

confinements were drastically reduced.

ACAP has long advocated providing compensation for passengers for excessive 

flight delays. 

While the airlines will not admit it, cancellations for financial reasons are common 

and amount to breach of contract or fraud. If a flight has so few passengers that

the airline wants to cancel it, it should do so at least two hours before, so that

passengers do not come to the airport unnecessarily, and provide passengers with 

alternate transportation within an hour of the canceled flight time plus a ticket 

refund.

Otherwise, the airlines should provide passengers with compensation that is 

equivalent to normal breach of contract compensation or at least equivalent to 

bumping, perhaps capped at several thousand dollars. In case of any dispute, it 
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should be presumed that a flight was canceled for economic reasons if there was 

no ground hold by air traffic control and the flight was was less than 30% booked.

There is presently no meaningful compensation provided to passengers for 

excessive flight delays. Any action brought in state or small claims courts gets 

transferred to federal courts based on airline claims of federal preemption, where the 

cost of litigation far exceeds any potential recovery. 

Most recently some airlines are redrafting their contract of carriage contracts with 

passengers to broaden the definition of force majeure to include things beyond 

weather such as maintenance or labor shortage caused delays, things that are 

traditionally defined as within the airline control and subject to passenger 

compensation.

And while passengers have flight delay compensation rights under the Montreal 

Convention of 1999 for international flights of up to $7,000 (see attached article at 

Appendix A) and also for EU travel for several times the airfare cost, there is no 

requirement by DOT that passengers be informed of their delay 

compensation rights, which are generally ignored or denied by the airlines.

Passengers who are stranded by airline delays and cancellations 

overnight away from their home city should receive ground transportation 

and over night accommodations. Airlines use to provide this a matter of course, 

but now many do not or do so only for certain favored passengers. This has led to 

chronic choke point airports like O'Hare in Chicago being dubbed "Camp O'Hare" with 

over 50,000 passengers per year being stranded and cots being set up in the 

baggage claim areas after midnight during the last high air traffic years (1998-

2000).

New York City is now the number one national choke point and efforts by the federal 

government such as re-doing air traffic approach and take off patterns and opening 

up some military air space areas during holiday periods have had limited effect. 

Other measures such as auctioning off slots have often been blocked in court by the 

airlines and airport authorities. 

Airlines offer “insurance” for flight or trip cancellation that is deceptive in that 

such policies fail to cover the overwhelming number of situations, and the coverage 

excludes inconvenience or consequential damages. For example, a passenger 

whose vacation or business trip is ruined cannot claim for that loss, and generally 

cannot cancel his/her trip except in situations of serious illness or death.

FlyersRights.org has received complaints on their toll free hotline of next of kin 

providing a death certificate and airlines still not providing a refund.

As a first step, the DOT should require that the premiums for such insurance cannot 

be excessive as that is normally defined by state insurance regulations and that the 

exclusions and claims limitations must be clearly disclosed to passengers.

Also anyone who offers such insurance should be required to disclose to the DOT 

BTS the amount of premiums collected, number of policies issued and the claims 

paid on an annual basis. 

Lost and Mishandled Baggage complaints represent the second largest category of 

airline passenger complaints to the DOT. 
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The existing regulations have been in effect for many years but they have been 

administered solely by the airlines which make receiving compensation difficult and 

often impossible.

Over 40,000 checked bags per year are never returned to passengers, as they do not 

have tags that identify the passenger owner. Instead of looking inside the bags for 

identifying information or posting a description as a normal lost-and-found operation 

would do, most airlines treat the bags as abandoned property and auctioned them

off with the proceeds going to the airline that lost or mishandled the baggage in the 

first place.

The airlines handling of lost baggage claims is scandalous with the 

overwhelming majority of claims being rejected and lost baggage sold after 90 days 

with no attempt to identify or return baggage without passenger identification on the 

exterior. (3)

Nearly all states use the Uniform Abandoned Property Act to deal with property that 

has been checked with a third party and then not returned to its owner. (At common 

law, unclaimed property escheated to the state.) This statute provides for the holder 

of the property to make attempts to locate the owner and if that is not successful to 

sell the property and turn over the proceeds to a state run abandoned property fund 

which holds the proceeds in trust in perpetuity for the true owner who may recover 

the proceeds upon filing a proper claim.

Airlines are not included in such state laws, but there should analogous federal 

regulation to require airlines to develop a computerized data base that will match 

airline passenger lost baggage with descriptions of contents and exterior by 

passengers. Any proceeds of lost baggage sold should be paid to a fund that is used 

for consumer protection services and/or measures to improve baggage handling. 

At present, airlines have a financial incentive not to return lost luggage, due to low 

caps on claims, especially for international flights, and the difficulty passengers have 

in providing claim details that the airlines require to honor claims. 

Airlines unlike the US Postal Service or private common carriers like UPS or Federal 

Express generally do not offer passengers insurance for valuable property that they 

take possession of (and increasingly charge extra fees for) and instead contrary to 

the common law of bailment disclaim all liability, even for negligence, and the DOT 

by regulation has supported this policy. 

Finally, theft by airline, TSA and other baggage handlers is a known problem, one 

that is often covered up by thieves who rip identifying tags off bags that they have 

looted. Foreign airports provide airline passengers with plastic sealants for their 

luggage to deter thieves and damage, but US security regulations require that TSA 

have free and easy access to inspect the interior of checked baggage, negating such 

deterrent measures.

The DOT should produce a consumer report that “unbundles” mishandled 

baggage and reports lost, damaged and stolen items separately by airline, 

and a report on the claims made vs claims paid.

See

http://www.azdatapages.com/datacenter/general/airport-items-lost.html 
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Other Consumer Complaints against Airlines involve Reservations, Ticketing and 

Boarding #3, Customer Service #4, Frequent Flyer programs #5, Refunds #6, 

Disabilities #7, Oversales (aka Bumping) #8, Fare #9, Ads #10, Discrimination #11, 

and Animals #12. See Consumer Air Travel Reports, RITA/DOT web site.

Frequent Flyer programs have become an integral part of air transportation 

services used by air travelers for vacation travel. They are also a source of revenue 

for airlines which sell miles to credit card, car rental, hotel and other businesses that 

seek to provide customers with a low cost inducement to buy customer loyalty. The 

US Supreme Court has ruled that states may not regulate these programs as they do

other consumer contracts, and the DOT or Congress has not yet done so. For 

accounting purposes frequent flyer miles represent a potential liability for the 

airlines. Airlines, however, take the position that these are not binding contractual 

obligations but merely marketing programs that can be altered or eliminated at will. 

As miles accumulate on the books of an airline, there is an enormous incentive for 

the airline to devalue them by program changes.

Most consumers however view frequent flyer programs as an important benefit, with 

the miles they accumulate for future travel being an obligation of the airline and an 

asset of theirs. 

Studies show that there are radical differences in airline frequent flyer programs, 

with some airlines allowing as little as 5% of miles to be redeemed for travel and 

others nearly 100%. At the very least, airlines should be required to disclose the 

percentage of miles that they are redeeming, the number of seats available for 

frequent flyer tickets on the most popular destinations and routes, as well as other 

key statistics to provide transparency and way for the public to evaluate such 

programs.

Also, there should be requirement that airlines provide notice to their frequent flyer 

members of material changes in their programs at least six months in advance, so 

consumers can plan ahead and make travel redemption decisions and decide 

whether they wish to continue to favor that airline with their travel business.

Over sales or bumping involves the practice of airlines of selling more tickets for a 

flight than they have seats available in order to account for no shows, then either 

denying passengers with reservations a seat or else seeking volunteers to deplane 

and take a later flight with an inducement such a ticket voucher for another flight.

Bumping is regulated by DOT rules but the airlines avoided regularly telling 

passengers with their rights are which depending on the amount of delay can involve 

cash payments of several times the ticket price plus a delayed flight as well as 

overnight accommodations and meals. If consumers knew their rights it is likely 

most would not voluntarily settle for a restricted voucher. As of 2011 the airlines

have to tell a “voluntary bump” what the likelihood of being bumped is, and the 

potential compensation they would get were they involuntarily bumped, and the 

same must be told to involuntary bumps. Compensation for bumping was also 

increased from 200-400 in 2007 to 650 and 1300.
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As airlines now fill a higher proportion of their seats than ever before, over sales are 

increasing, however, the use of non-refundable, non-changeable or highly restricted 

tickets has greatly decreased the number of no shows and has allowed the airlines to 

profit from them. 

Most recently the airlines have asked and the DOT has proposed a rule to discontinue 

reporting of over sales. The rule rather than being repealed should be expanded to 

require the percentage of oversales to be reported because there is presently no 

limit and so many passengers are being bumped as they tighten capacity and it is 

very hard to predict whether or not passengers with reservations on increasingly full 

flights will get a seat. 

Enforcement, Remedies and Advocacy

Finally, airline passengers need to include a way for passengers to enforce 

their rights in a timely and inexpensive way. Flyersrights.org has asked that 

complaints get a response in 24 hours and a resolution within 3 weeks. At present, 

weak guidelines normally require an acknowledgement within 30 days with no time 

limit on resolution.

The present system is totally lacking in accountability and transparency. Complaints 

to airlines or the US DOT are generally ignored and compensation claims rejected.

The DOT Consumer Protection office does not use best practices in handling the 

airline passenger complaints it does receive, i.e. requiring the airline to respond by a 

date certain, sharing its responses and communications with the passenger, or 

advising the passenger of his/her rights and the DOTs action or lack thereof to the 

complaint. Most complaints have generally only been logged for statistical purposes.

ACAP suggests mandating a small claims arbitration process for unresolved 

consumer claims (which could be an online private alternate dispute resolution 

service that uses retired judges, consumer affairs, or experienced arbitrators) where 

arbitration groups or arbitrators are approved by state or local attorneys general or 

consumer protection agencies and/or the use of local small claims courts which now 

handle the vast bulk of consumer claims against businesses. For disputes involving 

many passengers, and millions of dollars, class actions in state or federal courts 

should be authorized, as well as through arbitration. 

There also needs to be a provision that would require the airline to pay attorneys 

fees of the passenger if the resulting decision exceeds a rejected settlement offer.

Now, there is no arbitration process, airlines who are sued in state courts try to get 

the cases dismissed on jurisdictional grounds and normally have the cases removed 

from local and state courts to federal district court. The expense of federal litigation 

and most state court litigation far exceeds any potential recovery.

Other models of federal – state consumer protection laws that have been effective 

include the federal Lemon Law, which resolved the legal logjams and technical 

defenses long used by auto companies to frustrate consumer claims of involving 

defective autos for non-injury claims.

Clarify Airline Deregulation Legislation to eliminate the judicially mandated 

exemption of airlines from state consumer protection laws that apply to virtually all 

other industries and the de facto exemption of airlines for passenger common law 
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tort suits in most federal circuits. This can be done by legislation and/or by the DOT 

in its rulemaking and by formal opinions of counsel and by the Secretary.

The deregulation act was meant to prevent states from re-regulating the airlines as 

to scheduling, fares, and services. However, airline attorneys have successfully used 

some vague and ambiguous language in that 1978 legislation to claim exemption

(often called preemption) from any accountability for passenger abuse in state and 

federal courts (the argument being that only the DOT/FAA can regulate airlines, and 

if they do not ban a practice it is permitted even if in violation of basic common law 

rights that have long been the province of state law). See attached

article Reasonable Regulation Trumps Laissez Faire, by Paul S. Hudson, Air & Space 

Lawyer, Fall, 2010.

An Airline Passenger Emergency Hotline is sorely needed for passengers faced 

with stranding and other emergencies. The DOT “hotline” as currently configured is 

little more than a vehicle to gather complaint statistics. A caller receives a recorded 

message, and response time is usually over 10 days. Follow-up is spotty to nonexistent. There is no known intervention that occurs on a real time basis. And the 

DOT reportedly has 75 persons assigned to its “airline consumer” unit. The DOT is 

wasteful and ineffective with taxpayer funding for this purpose. 

The Coalition for an Airline Passengers’ Bill of Rights (CAPBOR aka Flyersrights.org) 

has a hotline staffed with volunteers established over the past 18 months and has 

received thousands of calls. But it is overwhelmed and without funding is unlikely to 

survive.

Given the nature of the federal bureaucracy, it would be waste of time and money 

for this to continue even with some reform. Rather the DOT should be required to 

contract with one or two non-profit aviation consumer organizations to provide a true 

airline passenger hotline for about half the funds now devoted to the DOT’s 

ineffective hotline. Such hotlines are frequently funded with government grants in 

other issue areas. 

Airline Passenger Groups have received no funding from DOT for many decades 

while airline and airport industry groups receive indirect funding from billions of 

dollars of federal grants made to the industry and paid for by airline passenger ticket 

taxes that can be as high as 30%. A portion of the ticket tax paid by 

passengers needs to be used to fund the passenger groups that actually 

represent passengers, most of whom cannot afford paid lobbyists or even the 

expense of attending advisory committee meetings on safety, security and other 

national aviation issue areas. 

An amount as low as a penny on every ticket would provide $6 to $10 million 

annually. This fund should be distributed largely on a formula basis with DOT 

oversight rather than on a discretionary grant basis, and passengers should be able 

to designate from a list of certified organizations which one(s) that they wish to have 

their consumer ticket tax sent to. This is similar to the methods used by United Way, 

federal and state funds for various causes such as wildlife protection, for utility 

consumer protection, and for promotion of certain agricultural products.

ACAP closed its Washington DC office in 2003 due to lack of funding and presently no 

aviation consumer group has a staffed office in Washington DC. The Airline 

Passenger Association discontinued operations some years ago. The International 
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Airline Passenger Association with an office in Dallas has cut back its operations and 

is actually for profit vendor of travel services to frequent airline passengers. Others 

who purport to speak for airline passengers are travel agents or industry consultants 

or media commentators often with close business ties to the airline industry and who 

cannot afford to offend and usually defend the industry, while purporting to speak for 

airline passenger interests. The national media has also cut back on air travel 

reporting and several important trade publications have been discontinued. Only 

FlyersRights.org , ACAP and some air crash organizations specialize in aviation 

consumer rights and are not conflicted.

Without funding, the voice of the airline passenger will be heard weakly if at all in 

Washington DC, their interests largely ignored, and the industry will continue to 

dominate and control air transportation policy and those officials who make the 

decisions. The national air transportation system is likely to continue to degrade due 

to gridlock among industry interests, coupled with the anti-consumer attitudes of 

much of the airline industry and the lack of robust consumer or public interest 

advocacy on national air transportation issues. 

Aviation Security complaints

largely against the Transportation Security Administration (TSA) at approximately 

10,000 per year now nearly equal consumer complaints against airlines. The leading 

complaints involve rudeness by TSA personnel and property complaints. There are 

also widely publicized concerns of personal privacy invasions by body searches and 

health risks involving X-ray screening of passengers. And there is a significant 

problem of theft crime and potential corruption within the TSA, that must also be 

addressed. (4)

The Aviation Security Advisory Committee was inactive from 2007 and has only 

recently been reactivated. A proper advisory committee with representatives of 

passenger, aviation terrorist victims, public health, as well as privacy advocates 

should be actively used by the TSA and the Dept. of Homeland Security to advise 

and to have oversight of passenger complaints and meet on a quarterly basis. 

Previous to 2007, this committee consisted of representatives of the air travel 

industry, federal agencies concerned with security, several aviation consumer 

organizations and a terrorist victims group. No members were from academia or the 

makers of aviation security equipment and services.

Aviation Safety is regulated by the FAA within the Department of Transportation. 

The only advisory committee with a public or passenger representatives is the FAA

Aviation Rulemaking Advisory Committee (ARAC) which is dominated by industry 

representatives. Its Occupant Safety Issue Group and Subcommittee as well as 

other subcommittees involving passenger safety have been inactive for over 10 

years, as the FAA has instead relied on all industry Advisory Rulemaking Committees 

(ARCs) with no passenger representatives that it dubiously claims are exempt from 

the public representation requirements of the Federal Advisory Committee Act and 

from the Open Meetings Law. 

Conclusion

The above provisions would cover the largest number of complaints of airline 

passengers, which are Flight Delays and Cancellations and Lost or 
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Mishandled Luggage. Airline Passenger Safety and Security issues may be outside 

purview of the DOT Consumer Protection Committee but if so should be addressed by 

ad hoc advisory committees appointed by the Secretary of Homeland Security and 

the Secretary of Transportation with timely reporting requirements to the 

Administration and the Congress.

Paul Hudson, Executive Director

Aviation Consumer Action Project (ACAP)

4411 Bee Ridge Road, #274

Sarasota, Florida 34233

410-940-8934 acapaviation@yahoo.com

240-391-1923 fax

Kate Hanni, Director

FlyersRghts.org

159 Silverado Springs Blvd.

Napa, California

707-337-0328

END NOTES

(1) Examples of monopolistic anti-consumer behaviors include – a) removal 

of car rental facilities from airports in favor of remote off-premise centers 

funded by additional taxes on car rentals increasing airline passenger expenses, 

travel time and inconvenience (the freed up space is then used for parking; 

parking fees represent about 60% of airport revenue and are the major source 

of airport revenue growth); b) provisions in airport bond indenture agreements 

and gate leases that restrict airline competition and airport capacity increases 

at airports; c) monopolistic contracts with airport vendors and ground 

transportation companies; d) restricting or shutting down area airports to 

prevent competition with favored airports that are cash cows and patronage 

wells for local politicians and their supporters; e) enforcing higher air fares for 

local travelers to and from hub airports to subsidize through travelers.

(2) Flight delays cost $32.9 billion, passengers foot half the bill

By Ann Brody Guy, College of Natural Resources | October 18, 2010

University of California at Berkeley.

The cost of domestic flight delays puts a $32.9 billion dent into the U.S. economy, and about half 

that cost is borne by airline passengers, according to a new study led by researchers at the 

University of California, Berkeley.
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The research was commissioned by the Federal Aviation Administration (FAA), and the final 

report was delivered to the agency today (Monday, Oct. 18).

Direct cost of air transportation delay in 2007

Cost Component

Cost

(in billions)

Costs to Airlines $8.3

Costs to Passengers $16.7

Costs from Lost Demand $3.9

Total Direct Cost $28.9

Impact on GDP $4.0

Total Cost $32.9

See http://newscenter.berkeley.edu/2010/10/18/flight_delays/ for the full text of the 

study. 

(3) Only 6% of all baggage claims are ever paid, and normally claims are rejected 

the first time they are presented. Passengers are NOT given information on how to 

file a claim at airports or TSA Checkpoints either. The airlines claim they hold 

baggage for 90 days but there is no regulation requiring they do so, and they sell 

baggage for about $3.00 per pound to a company in Alabama called 

“unclaimedbaggage.com”. Airlines reject passengers requests to come find their

bags in the warehouses where they claim they store them for 90 days preventing 

any kind of recovery on the part of passengers

(4) TSA houses a “Crime Database” that has vast information on “mishandled 

baggage” in airports at TSA checkpoints. Narcotic medications are being stolen at 

record rates as are iPADS and other electronics not covered by the airlines contract 

of carriage, therefore in carryon baggage. However, this data base has now been 

taken down from the TSA web site and is no longer available to the public. 

Apparently TSA does not want the public to know the extent of its crime problem.

Organizational Statement

The Aviation Consumer Action Project (ACAP) is a nonprofit corporation founded in 

1971 which acts as voice for air travelers on national issues of aviation safety, security, 

and consumer rights. Its publications include Facts & Advice for Airline Passengers (a 

pocket handbook for air travelers). ACAP has been involved in rulemaking before the 

FAA and most particularly bumping, baggage compensation, medical kits on airliners, 

airline security, and air quality. 
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Paul Hudson is a New York attorney and has been executive director since 1997. He 

represents ACAP as a member of the FAA Advisory Rulemaking Committee (ARAC), 

Executive Committee and the Transportation Security Administration (TSA) Aviation 

Security Advisory Committee (ASAC) (1997-2006). ACAP has also been an active 

member of the ASHRAE Advisory Committee on Aviation Air Quality Standards. 

ACAP intervened in a class action case on behalf of Northwest Airline passengers who 

were stranded in a snow storm in Detroit for many hours in 1999, the last major case 

involving stranded passengers; and was successful in achieving more thorough notices 

and robust compensation payments for several thousand passengers involved. ACAP 

filed amicus briefs and argued against the Air Transport Assn. position in defense of a 

2007 New York anti-stranding law that was ruled invalid by the Second Circuit Court of 

Appeals based on federal preemption arguments. 

K A T E H A N N I , D I R E C T O R , 

F L Y E R S R I G H T S . O R G

Kate Hanni is one today’s most passionate and dedicated national figures fighting for 

safeguards and protections to airline passengers. She is the Founder & Executive 

Director of FlyersRights.org, formerly the Coalition for Airline Passengers’ Bill of Rights 

(CAPBOR), the fastest growing airline passengers’ coalition in the country. 

Kate, her family and thousands of airline passengers were stranded on the tarmacs of 

airports all over the country aboard 124 American Airlines flights during the Christmas 

holidays, December 29th, 2006. For close to ten hours, Kate and the rest of the 

passengers were given no food, no water, no medical attention and no basic services such 

as working toilettes. Unable to deplane and sitting on the tarmac at Austin airport, Kate 

and other passengers decided to turn anger and frustration into advocacy by creating the 

Coalition for an Airline Passenger Bill of Rights (CAPBOR), now known as 

FlyersRights.org (FRO).

FRO has grown from 100 members to more than 50,000, and is supported by many 

consumer groups, pilots and flight attendants. Since June 2007, FRO has operated a 24 

hour HOTLINE (1-877-flyers-6) for airline passengers to report their experiences. 

During the first day of operation, the Hotline received more than 920 calls from angry 

and frustrated passengers in less than 3 1⁄2 hours.

Kate has taken her mission on behalf of the flying public to the national airwaves. In all, 

Kate has completed more than 5,700 interviews since 2007. And FRO/CAPBOR has filed 

numerous comments on DOT rulemaking and legislation that have led to significant proconsumer regulations and legislation including:

 October 2008 tarmac data mandate; airlines must report tarmac data for cancelled, 

diverted and multiple gate return flights
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 May 2008 bumping compensation doubled from 200 and 400 dollars respectively 

to 400 and 800 dollars

 December 21 2009, the three hour tarmac rule for domestic flights

 August 23, 2011 the 4 hour tarmac rule for international flight

 August 23 2011 refunds of baggage fees for lost baggage

 August 23 2011 another increase in bumping compensation to 650 and 1300 

dollars respectively

 January 23th 2012

o Ban on post purchase price fare increase

o Ability to hold a ticket for 24 hours without a re-faring fee

o Full Fare advertising : All fare advertising must include base fare plus any 

mandatory taxes, surcharges and booking fees

o Mandatory notification of flight delays every 30 minutes by any means 

possible, airport overhead announcements, overhead displays, e-mail, 

phone, text etc.

o In addition airlines are now required to disclose baggage fees online and 

or on the phone when making a reservation and they must make clear 

where all ancillary fee information can be found prior to booking a ticket.

In Five years FlyersRights.org had Fifteen Bills introduced before Congress, all titled 

“Airline Passengers Bill of Rights”, with both the House and Senate having passed their 

versions of the bills. The FAA Reauthorization Bill passed in February of 2012 

contained an Airline Passengers Bill of Rights.

FlyersRights.org and its leader Kate Hanni’s list of honors is long and growing-

 Named one of the top 25 most influential people by Nielson Business Meetings In 

April of 2007

 Named in 33 Most Influential in Travel by Travel Weekly on Nov. 20, 2007

 Among Forbes Magazine’s 25 Most Influential Women in Travel in 2008

 A Conde Nast Traveler Trailblazer in 2008

 Named one of Travel Weekly’s 33 Most Influential Names in Travel in 2010
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APPENDIX A

Airline Passenger Compensation Rights on International Flights 

Copyright 2008

Paul S. Hudson, Esq.

Aviation Consumer Action Project

PO Box 19029, Washington, DC 20036

acapaviation@yahoo.com email

International airline passengers, under the Montreal Convention of 1999 ratified by the 

U.S. in 2003 (and which replaced the Warsaw Convention), now have legal rights that are 

in some ways superior to the rights of passengers on U.S. domestic flights. International 

air travel covered by this treaty includes any ticketed trip with stopping, departure or 

destination points in two or more countries. These rights include:

1) Strict liability for bodily injury or death incurred on board the aircraft or in the 

course of embarking or disembarking, up to approximately $160,000 in compensation. 

A passenger does not have to prove negligence or fault by the airline. However, damages 

may be reduced for contributory negligence or wrongful acts by the passenger.

For damages over $160,000, an airline may use the defense that it was not negligent or 

did not engage in wrongful conduct, or the damages were solely due to negligence or 

wrongful acts of a third party. 

2) For lost or damaged or delayed baggage, the airline liability is generally limited to 

$1,640 per passenger, unless the passenger has handed the airline a special interest 

declaration and paid any supplementary fee. .

3) Airlines are liable for damages caused by delay in the transporting of passengers or 

cargo up to $6,640, unless the airline proves that it took all reasonable measures to 
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prevent the damage caused by delay or that it was impossible for them to take such 

measures.

No airline is permitted by contract to assert lower liability limits for international air 

travel than those provided for in the Montreal Convention and any such contract terms 

are void. In general, state common law tort or statutory actions are now preempted, as 

most courts now view the Montreal Convention as the exclusive remedy for claims 

arising out of international air transportation. 

Time Limits

Legal actions on all claims must be brought within two (2) years of the incident. 

However, in addition, complaints to the airline for baggage damage claims must be made 

within 7 days, for cargo damage within 14 days of the date of receipt by the passenger. 

For baggage or cargo delay claims, the passenger must file a complaint with the airline 

within 21 days of receipt. Complaint to the airline must be made in writing and delivered 

or sent within the time limits or the claim is barred except in case of fraud by the airline. 

Jurisdiction 

Courts that have jurisdiction for passenger actions against airlines under the Montreal 

Convention include US federal district courts and other courts where the passenger has 

his/her primary and permanent residence, where the airline is domiciled (incorporated) or 

has its principal office, the final destination location of the flight, or where the airline has 

a place of business through which the ticket was purchased. 

This short article is for informational purposes only and does not constitute legal advice. 

Anyone seeking legal advice should consult with an attorney of their choice. The text of 

the Montreal Convention is available on the internet at 

http://www.jus.uio.no/lm/air.carriage.unification.convention.montreal.1999/doc.html 

The US dollar amounts specified in this article are based on the conversion to US dollars 

from the Special Drawing Rights units used in the Convention as of February 22, 2008. 

This conversion is posted daily on the International Monetary Fund web site. 
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