Two American Airlines Boeing 737s are shown at the gate on July 7, 2022, at the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, FL. (AP Photo/Wilfredo Lee, File)
By David Koenig
The federal government is fining American Airlines $4.1 million for dozens of instances in which passengers were kept on board planes without a chance to exit during long ground delays.
The U.S. Department of Transportation said Monday it is the largest such fine against an airline since rules covering long ground delays took effect about a decade ago.
American owes half the fine in the next 30 days, while the department gave the airline credit for the other half, just over $2 million, for compensation it paid to delayed passengers, according to a consent order that settled the case.
The department said its investigation revealed that from 2018 through 2021, American kept 43 domestic flights stuck on the ground for at least three hours without giving passengers — 5,821 in all — the chance to deplane. There are exceptions in which airlines are allowed to bend the rules, including for safety and security reasons, but the department said none of those were factors in the flights it identified.
“This is the latest action in our continued drive to enforce the rights of airline passengers,” said Transportation Secretary Pete Buttigieg, who vowed to hold airlines accountable under consumer-protection laws.
According to the consent order, American said it seeks to avoid any lengthy ground delays, but the 43 flights represented a tiny fraction of 1% of the roughly 7.7 million flights that American and American Eagle operated between 2018 and 2021. The airline said it provided “substantial compensation” to delayed passengers," and has since devoted more management attention to avoiding delays.
Most of the delays occurred at Dallas-Fort Worth International Airport, where American is the dominant airline, and others occurred in San Antonio and Houston when flights heading to DFW were diverted there. Many occurred during thunderstorms, and American was unable to manage its airport gates to let passengers deplane.
The airline took particular issue with delays at Reagan Washington National Airport during a winter storm in January 2019, but accepted the settlement outline in the consent order.
Ron Hammond, Sr. Director of Government Relations at the Blockchain Association, breaks down Trump’s plan to strengthen U.S. leadership in financial technology.
BiggerPockets Money podcast is now available on Cheddar Wednesdays at 10am ET! Mindy Jensen shares how her podcast is helping people gain financial freedom.
The social video platform's future remains in doubt, as players scramble to profit from the chaos. Plus: Big oil gets bigger, DOGE downsizes, and tariffs!
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
