DOT issues guidance for airlines to clarify contracts of carriage regarding international code-share flights

Issue
The U.S. DOT has issued a Federal Register notice requiring airlines to clarify the information in their contracts of carriage regarding what rules apply on international code-share flights. The DOT is requesting that ticketing airlines be specific about any policy differences such as baggage allowance, compensation for flight delays and cancellations and check-in times when an international code-share flight is involved.

Background
The DOT has granted code-share permission to airlines with the understanding that the ticketing airline's rules would apply. Airlines can apply the rules of the code-share partner (the airline actually doing the flying) but they must communicate any differences to the passenger. Currently, most airlines simply use language such as "the operating carrier's rules apply." This puts the burden on the customer to find out just what those rules are. The DOT directive is seeking to put the responsibility on the ticketing carriers to be specific about the applicable rules. Additionally, the DOT requests that airlines remove the terms in their contracts dealing with the exclusion of high-value items from their baggage liability on international flights. The rules of the international treaty known as the Montreal Convention apply. This protects all items in checked luggage but also sets a maximum liability amount.

The importance to our members
Some of our members have expressed confusion and concern when it comes to understanding the rules that apply in code-share situations, particularly with baggage restrictions and interrupted schedules. IAPA trusts that the requirement of clear, precise language in an airline's contract of carriage will provide a great customer benefit while creating little to no known burden for the airlines.

IAPA's position
IAPA supports the DOT request as it awaits a response from the airlines. The association feels that its members who travel on designated code-share flights deserve to know which airline liability rules apply to their particular journey and that this information should be provided to the customer at the earliest allowable opportunity.

Status
The 90-day compliance period will expire at the end of June, 2009. IAPA is not aware of any response from the airlines or its policy-making bodies regarding this DOT notice.

Updated: 18 May 2009