DOT fines United for 'wasting valuable Department resources'

By Ben Mutzabaugh
September 24, 2010

United Airlines has become one of the first U.S. carriers to be fined by the DOT under new rules meant to prevent long ground delays, the Chicago Tribune reports.

The catch? United did not actually violate the rule, but was hit with a $12,000 fine anyway.

The new DOT rules, which went into place this past April, threaten airlines with fines of up to $27,500 per passenger for each flight delayed on the ground for more than three hours. Carriers can avoid the fine, however, if passengers are provided food, water and are given the opportunity to return to the terminal prior to the three hour mark.

United came up against this rule in May when it was forced to divert four Denver-bound flights to Colorado Springs after thunderstorms snarled air traffic at Denver. As the stormy weather continued in Denver, United's planes remained grounded in Colorado Springs while the airline awaited clearance from air traffic control to send those four flights onward to Denver.

Citing DOT data, the Tribune says the ground delays for those flights ranged from 3 hours, 10 minutes to 4 hours, 41 minutes. United says it gave customers snacks and water, and offered all a chance to deplane prior to the three-hour mark. The carrier, saying it wanted to comply with the letter of the new law, then reported the delays to the DOT.

So, why the fine? The Tribune reports the DOT determined "United should have stopped the clock on the delays at the point where passengers were allowed to disembark … . The carrier was penalized for reporting inaccurate data to the Transportation Department, which published the totals in its monthly Air Travel Consumer Report."

"United's misreporting of this data wasted valuable Department resources," the DOT says in a Sept. 21 consent order quoted by the Tribune.

TheStreet.com cites the consent order as well, reporting that the DOT apparently was miffed it had to investigate the incident after United reported it only to find that there was no actual violation.

The publication adds the DOT "said that United settled 'in order to avoid litigation.' " United must pay $6,000 up front, but will not have to pay the second half of the fine if it does not misreport flights related to the policy again, according to TheStreet.com.

Still, as you might expect, United officials express displeasure at the fine.

"It is unfortunate that our effort to be fully transparent resulted in our inadvertently reporting four flight delays where we complied with regulations and with our own procedures to ensure the comfort and safety of our customers and employees," United spokesman Rahsaan Johnson tells the Tribune.

Or, perhaps United officials might agree with Denver Business Journal blogger Ed Sealover, who writes: "To hell with 'better safe than sorry,' apparently."

And Sealover not the only one to voice disapproval of the DOT fine.

"They're basically penalizing [United] for doing everything right," Anne Banas, editor of SmarterTravel.com, says to the Houston Chronicle. "It's pretty much ridiculous," she adds.

And, in addition to United, the Chronicle notes that Delta affiliate "Pinnacle Airlines also was fined $5,000 earlier this month for unnecessarily reporting a tarmac delay."

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DOT fines United for 'wasting valuable Department resources'

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