The government announced in December it would fine airlines $27,500 per passenger for long tarmac delays - or $2.75 million for a 100-passenger flight...Cancellations cost far less than a huge fine, especially since seats are routinely prepaid and airlines save fuel cost.I dont fly that often and have never experienced a long delay (nothing more than 1 hour, I believe) and I am sure I would be highly annoyed by a 3+ hour delay. However, if airlines, as to individuals, respond to incentives it seems like they will cancel flights if there is an indication that a lengthy delay is in the works.
What do you think? Are the fines a deterrent to prevent delays or an incentive to cancel flights? Which is worse for the traveling public? I am unsure on this one...
(HT: Carpe Diem)
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