DOT Logo

April 10, 1992

FOLLOWING LETTER WAS SENT TO AMERICAN AIRLINES
AND 55 OTHER U.S. SCHEDULED AIRLINES

We would like to call your attention to several consumer-related issues concerning the new fare structure recently announced by American.  American's April 10 newspaper advertisement states that all tickets will be subject to a penalty of $25 if the passenger wishes to change his or her routing.In addition, First Class and full-fare coach tickets will incur a $25 penalty if the passenger wishes to cancel and obtain a refund.Since First Class and full-fare coach tickets have generally not been subject to penalties in the past, we would like to remind you of the requirements of 14 CFR 253.7 of our regulations.This section states:

A passenger shall not be bound by any terms restricting refunds of the ticket price [or] imposing monetary penalties on passengers . . . unless the passenger receives conspicuous written notice of the salient features of those terms on or with the ticket.

We would expect that this new $25 charge will be disclosed on or with all tickets that are subject to the charge, including First Class and full-fare coach tickets.

We are anticipating that the $25 penalties on First Class and full-fare coach tickets will result in fewer no-shows.If you agree, we would appreciate it if you would advise us whether American plans to adjust the level to which flights are overbooked in order to reflect this.

To the extent that so-called "bereavement" or "compassion" fares are discontinued, this will affect a small but sensitive group of people.Please confirm to us that all references to such programs have been revised, so that reservationists and travel agents do not unwittingly provide outdated information to callers asking about such fares.

We would assume that you will honor any tickets already issued for discount fares that are lower than the lowest new fare now in that market. Similarly, we anticipate that previously-issued First Class and full-fare coach tickets will not be subject to the new $25 penalty. If this is not the case, please provide us with your justification.

I look forward to hearing from you.If you have any questions, please call us at (202) 366-5957.  I will be out of town on April 13 and 14, but Mr. Norman Strickman will be able to assist you or your staff on those days.  Mr. Strickman is chief of the Consumer Affairs Division.

Sincerely,

Hoyte B. Decker, Jr.

Assistant Director for Consumer Affairs

Office of Intergovernmental and Consumer Affairs

name

title

company

address

moreaddress

city

state

zip

salutation

Mr. Geoffrey T. Crowley

President & CEO

Air Wisconsin Airlines Corp.

W6390 Challenger Dr., Suite 203

Appleton

WI

54915

Mr. Crowley

Mr. Robert Swenson

President

AirTran Airways, Inc.

6280 Hazeltine National Dr.

Suite 100

Orlando

FL

32822

Mr. Swenson

Mr. Izad Djahanshahi

President

Airways International

P.O. Box 1244

Miami Springs

FL

33266-1244

Mr. Djahanshahi

Mr. Steven G. Hamilton

V P-Legal and General Counsel

Alaska Airlines, Inc.

P.O. Box 68900

Seattle

WA

98168

Mr. Hamilton

Mr. Glenn R. Zander

President & CEO

Aloha Airlines, Inc.

PO Box 30028

Honolulu

HI

96820

Mr. Zander

Mr. Martin J. Whalen

Sr Vice President and General Counsel

America West Airlines, Inc.

4000 East Sky Harbor Blvd.

Phoenix

AZ

85034

Mr. Whalen

Ms. Anne H. McNamara

Sr V P-Administration & General Counsel

American Airlines, Inc.

Mail Drop 5618

Post Office Box 619616

DFW Airport

TX

75261-9616

Ms. McNamara

Mr. J. George Mikelsons

Chairman & CEO

American Trans Air, Inc.

7337  W. Washington St.

Indianapolis

IN

46231

Mr. Mikelsons

Mr. Jonathan Batchelor

President

Arrow Air, Inc.

Box 026062

Miami International Airport

Miami

FL

33103

Mr. Batchelor

Ms. Cheryl Grue

President

AV Atlantic

1170 Lee Wagener Blvd., Suite 201

Ft. Lauderdale

FL

33315

Ms. Grue

Mr. John Catsimatidis

President

Capitol Air Express, Inc.

823 Eleventh Ave.

New York

NY

10019

Mr. Catsimatidis

Mr. Daniel Ratti

President

Carnival Air Lines, Inc.

1815 Griffin Road, Suite 205

Dania

FL

33004

Mr. Ratti

Mr. Tod McClaskey

President

Casino Express Airlines

JC Harris Field

803 Murray Way

Elko

NV

89801

Mr. McClaskey

Mr. Jeffery Smisek

Vice President and General Counsel

Continental Airlines

2929 Allen Parkway, Suite 2010

Houston

TX

77019

Mr. Smisek

Mr. Robert S. Harkey

Sr V P, GeneralCounsel, and Secretary

Delta Airlines, Inc.

Hartsfield Atlanta International Airport

Atlanta

GA

30320

Mr. Harkey

Mr. Donald Rhoads

General Manager

Eagle Airlines

175 East Reno Ave., Suite C9

Las Vegas

NV

89119

Mr. Rhoads

Mr. Steven Davis

VP-Operations, Inc.

Eastwind Airlines

Trenton-Mercer Airport

Building 1 Scotch Rd.

W. Trenton

NJ

08628

Mr. Davis

Mr. Mel Spelde

President

Empire Airlines, Inc.

11101 Airport Drive

Hayden Lake

ID

83835

Mr. Spelde

Mr. Larry K. Lane

President

Evergreen International Airlines, Inc.

3850 Three Mile Lane

McMinnville

OR

97128

Mr. Lane

Mr. James Wikert

Chief Executive Officer

Express One International, Inc.

3890 West NW Highway, #700

Dallas

TX

75220

Mr. Wikert

Mr. Sam Addoms

President & CFO

Frontier Airlines, Inc.

12015 East 46th Ave.

Denver

CO

80239

Mr. Addoms

Mr. Robert Stephan

President

Great American Airways

Box 10165 Reno-Cannon Int'l Airport

Reno

NV

89510

Mr. Stephan

Mr. Bruce Nobles

Chairman & CEO

Hawaiian Airlines, Inc.

PO Box 30008

Honolulu

HI

96820

Mr. Nobles

Ms. John Kelly

Chairman, President & CEO

Horizon Air

PO Box  48309

Seattle

WA

98148

Mr. Kelly

Mr. David Clark

President

International Charter Xpress

3800 Rodney Parham Rd.

Little Rock

AR

72212

Mr. Clark

Mr. Jerry Murphy

President & CEO

KIWI International Airlines

Hemisphere Center

U.S. Route 1-9 South

Newark

NJ

07114

Mr. Murphy

Mr. Dennis Berry

Vice President-Customer Service

Mesa Airlines, Inc.

2325 E. 30th Street

Farmington

NM

87401

Mr. Berry

Mr. Robert Gould

President

MGM Grand Air, Inc.

1500 Rosencrans Ave.

Suite 350

Manhatten Beach

CA

90266

Mr. Gould

Mr. Ross Fischer

President

Miami Air International, Inc.

PO Box 660880

Miami Springs

FL

33266-0880

Mr. Fischer

Mr. John Selvaggio

President

Midway Airlines

300 W. Morgan St.

Durham

NC

27701

Mr. Selvaggio

Mr. Timothy E. Hoeksema

Chairman, President & CEO

Midwest Express Airlines, Inc.

6744 S. Howell Ave.

Oak Creek

WI

53154

Mr. Hoeksema

Mr. Daniel McKinnon

President

North American Airlines, Inc.

Building 75, JFK Int'l Airport

Suite 250

Jamaica

NY

11430

Mr. McKinnon

Mr. Douglas M. Steenland

Sr V P, General Counsel, & Secretary

Northwest Airlines

5101 Northwest Drive

St. Paul

MN

55111-3034

Mr. Steenland

Mr. Clay Barnett

President

Presidential Air

17422 Pullman St.

Irvine

CA

92714

Mr. Barnett

Mr. Richard Reeve

President

Reeve Aleutian Airways, Inc.

4700 West International Airport Rd.

Anchorage

AK

99502

Mr. Reeve

Mr. Robert Redding

President

Reno Air, Inc.

PO Box 30059

Reno

NV

89520-3059

Mr. Redding

Mr. Larry Sullivan

President

Renown Aviation, Inc.

3940 Mitchell Road

Santa Maria

CA

93455

Mr. Sullivan

Mr. William Meenan

President

Rich International Airways, Inc.

5400 NW 36th St.

Miami

FL

33152

Mr. Meenan

Mr. Ron Ryan

President

Ryan International Airlines, Inc.

6810 W. Kellogg

Wichita

KS

67209

Mr. Ryan

Mr. Gregg Lukenbill

President

Sky King, Inc.

3600 Power Inn Rd., Suite H

Sacramento

CA

95826

Mr. Lukenbill

Mr. James Parker

Vice President and General Counsel

Southwest Airlines Co.

2702 Love Field Drive

Dallas

TX

75235

Mr. Parker

Mr. Robert P. Fleming

President & CEO

Sportsflight Airways, Inc.

2285 E. Elvira Rd.

Tucson

AZ

85706

Mr. Fleming

Mr. John Skiba

President

Sun Country Airlines, Inc.

7701 26th Ave. South

Minneapolis

MN

55450

Mr. Skiba

Mr. Tom Kolfenbach

President

Sun Jet International, Inc.

4700 140th Ave.

Suite 106

Clearwater

FL

34622

Mr. Kolfenbach

Mr. Morris Nachtomi

Chairman & CEO

Tower Air, Inc.

Hangar 17

JFK International Airport

Jamaica

NY

11430

Mr. Nachtomi

Mr. Lincoln Francis

President

Trans American Charter

5923 South Central Ave.

Chicago

IL

60638

Mr. Francis

Mr. Bill Mishk

VP-Marketing

Trans States Airlines

9275 Genaire Dr.

St. Louis

MO

63134

Mr. Mishk

Mr. Richard Magurno

Sr V P and General Counsel

Trans World Airlines, Inc.

One City Centre

515 North Sixth Street

St. Louis

MO

63101

Mr. Magurno

Mr. Stuart Oran

Exec V P-Corp Affs & General Counsel

United Airlines, Inc.

P.O. Box 66100

Chicago

IL

60666

Mr. Oran

Mr. Lawrence M. Nagin

Exec V P & General Counsel

USAir, Inc.

Crystal Park Four

2345 Crystal Drive

Arlington

VA

22227

Mr. Nagin

Mr. Lewis Jordan

President

ValuJet Airlines, Inc.

1800 Phoenix Blvd.

Suite 126

Atlanta

GA

30349

Mr. Jordan

Mr. Robert McAdoo

Chief Executive

Vanguard Airlines, Inc.

30 NW Rome Circle

Terminal B Mezzanine Level

Kansas City

MO

64153

Mr. McAdoo

Mr. George Travis

President

Viscount Air Service, Inc.

1000 E. Valencia Rd.

Tucson

AZ

85706

Mr. Travis

Mr. Larry Risley

Chief Executive Officer

Westair, Inc.

5570 Air Terminal Dr.

Fresno

CA

93727

Mr. Risley

Mr. Edward R. Beauvais

Chairman, President & CEO

Western Pacific Airlines, Inc.

2864 S. Circle Dr., Suite 1100

Colorado Springs

CO

80906

Mr. Beauvais

Mr. Charles W. Pollard

President

World Airways, Inc.

13873 Park Center Rd., Suite 400

Herndon

VA

22071

Mr. Pollard