Friday, July 16, 2010

Expected Consequences of Regulation

As reported by ABC News:
Airlines appear now to be canceling more flights rather than risk multi-million dollar fines for keeping passengers stuck on the tarmac for three hours or more.

While passengers won't be trapped in hot, crowded jets for hours on end, they might be stuck waiting in terminals even longer, and getting to their destination hours, maybe even days later.

Only five domestic flights in May waited on the tarmac for more than three hours, according to new data from the Department of Transportation. That's down from 34 planes last May.

At the same time, airlines chose to cancel more flights. Last May, there were 4,792 flight cancelations. This May, that figure jumped to 6,716 flights, according to the DOT.

Airlines protested the new DOT tarmac rule, saying it would have unintended consequences including the cancelation of more flights, ultimately getting passengers to their destinations later.

"There's a much larger number of cancelations than we've ever seen before," said Darryl Jenkins, an airline consultant who also runs the website The Airline Zone.

Jenkins said it is taking 17 to 18 hours on average to rebook passengers on those canceled flights.
Expect something similar from the Financial Reform law (passed yesterday by the Senate).

(via TigerHawk)

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