Boston, MA 10/28/2013 (wallstreetpr) – The U.S. Department of Transportation (DOT) has fined United Continental Holdings Inc (NYSE:UAL) $1.1 million through its subsidiary United Airlines over tarmac delay violation. This fine is the largest to be issued out by DOT since the rule that limits long delays came into force in 2010.
The airline has been fined over tarmac delays which took place on July 13’12 at the O’Hare International Airport in Chicago. According to the rule, domestic flights are not allowed to let aircrafts stay more than three hours on a tarmac without letting the passengers to deplane. The exception to this rule is only over safety or if returning to the terminal would disrupt airport operations as communicated by the air traffic control. However, the airline experienced 13 delays which exceeded the allowed limit of three hours and the delays lasted between two and 77 minutes. The said delays were occasioned by ramp closures and aircraft movement disruption at the O’Hare due to severe lightning and thunderstorms.
As a result, the regulatory agency has asked the airline to pay $475K to the U.S. and the balance ($625K) to cover the affected passenger’s mitigation measures. The said fine balance of $625K is somewhat a self-fine considering that it will be used by the airline itself for corrective actions to ensure future compliance with the delay rules. The airline is faulted for its failure to contact the airport personnel for assistance during the said delays. It is also faulted for departing from is own plans for tarmac delays while it has a contingency of plans in that regard.
Following this tarmac delay fine, UAL has promised to comply with the delay regulations through improved safety and procedures for its domestic flights. Before the announcement of this record fine, United Airline had posted 13.5% increase in year-over-year income to $590 million for its Q3.13. Including the special charges, the airline resulted income of $379 million.
