Government Fines American Airlines $900,000 for Tarmac Delays

The Federal Aviation Administration (FAA) fined American Airlines a total of $900,000- $650,000 of which must be paid in the next 30 days to the FAA and up to $250,000 can be credited for refunds, vouchers, and frequent flyer mile awards provided to the passengers on the 15 American Eagle flights that were excessively delayed (in violation of the three hour rule).

The three hour delay rule (namely the steep fines that accompany it- as much as $27,500 per passenger) may be even more disruptive to even more travelers than sitting uncomfortably on the tarmac for 10 hours. Airlines are far more likely to cancel the flight all together if there is concern for being delayed. Better to avoid a huge fine and put passengers out than have to deal with disgruntled passengers AND a massive fine.

According to the Associated Press, "between May 2010 and April 2011, the first 12 months after the time limit was in effect, airlines reported 20 tarmac delays of more than three hours, none of which was more than four hours long. In contrast, during the 12 months before the rule took effect, airlines had 693 tarmac delays of more than three hours, and 105 of the delays were longer than four hours." These number seem great, though they do not reflect the much higher percentage of flights that are canceled as a result (many of which might not have actually experienced any tarmac delays at all)- better safe than sorry.

More on this from AP: http://news.yahoo.com/airline-fine-may-send-flight-cancellations-soaring-222545569.html