May 12, 2010

Airlines Cancel First Flights Bacause of New DOT Delay Rules

When DOT adopted new rules that airlines counld not delay flights before take-off for more than three hours before facing draconian DOT penalties. carriers and others warned that they would have every incentive to cancel the flights before the deadline, rather than become liable to millions of dollars in penalties.  Consumer groups rejected this possibility.  Now that the rule has become effective we are receiving reports of the first cancellations.  Surprise -- corporations react to economic incentives.

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