Oct. 7 (
Bloomberg) -- AirTran Airways paid a U.S. fine for promoting $39 fares that cost $44. Delta Air Lines was penalized for not disclosing fees in fare ads. Continental Airlines gave money for underreporting complaints from disabled passengers.
That was in May alone. President Barack Obama’s Transportation Department has almost doubled fines on the aviation industry since taking office from the final two years of George W. Bush’s presidency, federal data show.
The administration has faulted airline actions from bumping passengers to flawed plane inspections. The growing fines weigh on carriers working to contain costs after reporting their first collective profit in 2 1/2 years in the second quarter, according to Kenneth Quinn, a former general counsel with the Federal Aviation Administration.
“The pendulum has swung pretty hard,” said Quinn, a partner with Pillsbury Winthrop Shaw Pittman LLP in Washington. “Multimillion-dollar fines can negate a good quarter.” ...........(more)
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