Federal prosecutors have found that Boeing violated the terms of its 2021 deferred prosecution agreement related to the Max 8, the aircraft that was tied to two fatal crashes in 2018 and 2019.
25.04.2024 - 21:49 / skift.com / Pete Buttigieg / Joe Biden / Robert Isom / Meghna Maharishi
American Airlines CEO Robert Isom said Thursday that certain aspects of a new federal government rule that would require airlines to provide automatic refunds were “gray.”
“I’d tell you that from top of mind, there are a lot of issues that I think are still gray,” Isom said during a call with analysts.
One issue in particular that Isom described as “fairly gray” was who takes the blame when a flight is delayed or canceled.
“There’s a lot of parties that are involved with air transportation,” Isom said. “We control a lot of it. We certainly don’t control the weather, but we also depend on the FAA for aircraft control, not just in the short run, but in the long run as well. We have to make the right decisions for our customers.”
Isom wondered about the intent of the rule. Is it meant to prevent meltdowns? Or something broader?
“That’s something that we need to figure out,” he said.
The Department of Transportation released a long-awaited final rulemaking on Wednesday that tackled “junk fees” and set requirements for when airlines should provide customers with automatic refunds.
The rule said airlines would need to provide automatic refunds in instances where flights are significantly delayed or canceled, checked baggage is delayed and when ancillary services that were paid for were not provided.
Customers are eligible for refunds if departures or arrivals for domestic flights are delayed by three hours and international flights are delayed by six. The new rules would take effect over the course of two years, according to the AP.
Isom is one of the first major U.S. airline CEOs to voice his concerns about the new DOT rules. Airlines for America, a trade group that represents American and other airlines, said the industry already offers consumers a large range of options.
American also announced first-quarter earnings Thursday morning. The carrier reported operating revenues of $12.6 billion and a loss of $312 million, trailing its competitors Delta Air Lines and United Airlines. Isom said in an earnings release that despite the first-quarter loss, American was on track to meet its full-year financial targets.
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Federal prosecutors have found that Boeing violated the terms of its 2021 deferred prosecution agreement related to the Max 8, the aircraft that was tied to two fatal crashes in 2018 and 2019.
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You may have missed the chance to spend the night in Barbie's Malibu DreamHouse or Shrek's Swamp, but don't fret, because Airbnb just took its once-in-a-lifetime stays and experiences up a notch. On May 1, Airbnb announced its latest category, Icons, a new vertical for “extraordinary experiences hosted by the greatest names in music, film, television, art, sports, and more.” Airbnb's goal is to bring some of travelers' wildest dreams to life—from witnessing the Opening Ceremony of the Olympic Games along the River Seine in Paris (on a terrace in the Musée d’Orsay designed by Mathieu Lehanneur, the designer of the torch and cauldron for the Paris 2024 Games), to spending the night in the Ferrari Museum in Italy (and taking a lap with Scuderia Ferrari ambassador driver Marc Gené while you're there). With overnight stays in jaw-dropping locations and experiences you won't soon forget, these listings certainly live up to their name.
Just days after the Department of Transportation released a rule requiring airlines to give automatic refunds after flight disruptions, Congress is set to vote on legislation that could impose more hurdles.