Jetrader - Summer 2014 - 46

the ADA, as it was
connected to the
rates airlines charge
for flights and thus
subject to the oversight
of the DOT. 5 The customer's
only recourse was to sue the
airline for breach of the program
rules, a claim he was not likely
to win.
A trial court dismissed a federal
racketeering suit against Spirit concerning the alleged deceptive manner in which
its PUF was displayed on its website. 6 The
court found that, under the ADA, the DOT
had exclusive jurisdiction to regulate fare
advertising, which it had done through its
"fare advertising rule." The court noted
that the racketeering claim was simply a
veiled attempt to bring a claim for deceptive advertising, which is exclusively regulated by the DOT. This case is on appeal.
Another trial court dismissed all but a
state equity claim for American's failure
to refund baggage fees for lost luggage.7
The court ruled that the breach of implied
contract claim (American's contract of

Unbundling has spurred a new wave of
complaints and lawsuits attacking ancillary
fees-the fees that helped turn the airlines'
perennial losses into reliable profits.
carriage did not address fee refunds) was
preempted by the ADA as being related to
American's charge for services. Since that
suit was filed, the DOT passed regulations
requiring the refund of baggage fees paid
for lost bags, but not delayed bags. The
remaining claim was dismissed, ultimately
a victim of the airline's bankruptcy.
Taken together these recent case decisions (plus others) and regulations, including the 2012 "Passenger Bill of Rights,"
confirm a strong policy to regulate airline
fares, services and routes in the U.S. at
the federal level. Airlines thus avoid a
patchwork of potentially conflicting state
laws and gain protection from customers
unhappy about fees and other services.
They also preserve these fees as a solid
source of revenue for U.S. airlines for the
foreseeable future.

46 688321_JetLanding.indd 1
The official publication of the International Society of Transport Aircraft Trading

Don Mitchell is a partner with the law firm of
Smith, Gambrell & Russell, LLP and concentrates his practice in U.S. and cross-border
aviation equipment finance transactions and
litigation. Please e-mail any questions, comments or suggestions for future topics to:
dmitchell@sgrlaw.com.
©2014 Donald B. Mitchell
1

2

3
4
5
6
7

U.S. PIRG Education Fund report, "The Unfriendly
Skies Five Years of Airline Passenger Complaints to
the Department of Transportation," April 2014
"The Most Hated U.S. Airline Is Also the Most
Profitable," BloombergBusinessweek, April 10,
2014
"Is that a Lawsuit in your Luggage?" (2010);
"Catching the Spirit" (2013)
Personal injury claims are not impacted by
the ADA.
Northwest v. Ginsburg
Ray v. Spirit
Covarrubias v. American Airlines

4/15/14 11:12 PM



http://www.jetlandingsystems.com http://www.jetlandingsystems.com

Jetrader - Summer 2014

Table of Contents for the Digital Edition of Jetrader - Summer 2014

Q&A: John Slattery
ISTAT Asia Focuses on Challenges, Opportunities of the Region
State of the Regions: Asia Pacific
Cape Town: Global Treaty Expands Thanks to Benefits Offered, Advanced Information Base
ISTAT Americas 2014
In Memory of Gilbert W. Speed
A Long Overdue Thank You
Bundle…Down
East Meets West in Istanbul
A Message from the President
Calendar/News
ISTAT Foundation
Aviation History
Aircraft Appraisals
Advertiser.com
Advertiser Index
Jetrader - Summer 2014 - cover1
Jetrader - Summer 2014 - cover2
Jetrader - Summer 2014 - 3
Jetrader - Summer 2014 - 4
Jetrader - Summer 2014 - A Message from the President
Jetrader - Summer 2014 - 6
Jetrader - Summer 2014 - 7
Jetrader - Summer 2014 - 8
Jetrader - Summer 2014 - Calendar/News
Jetrader - Summer 2014 - 10
Jetrader - Summer 2014 - Q&A: John Slattery
Jetrader - Summer 2014 - 12
Jetrader - Summer 2014 - 13
Jetrader - Summer 2014 - ISTAT Asia Focuses on Challenges, Opportunities of the Region
Jetrader - Summer 2014 - 15
Jetrader - Summer 2014 - 16
Jetrader - Summer 2014 - 17
Jetrader - Summer 2014 - 18
Jetrader - Summer 2014 - 19
Jetrader - Summer 2014 - State of the Regions: Asia Pacific
Jetrader - Summer 2014 - 21
Jetrader - Summer 2014 - 22
Jetrader - Summer 2014 - Cape Town: Global Treaty Expands Thanks to Benefits Offered, Advanced Information Base
Jetrader - Summer 2014 - 24
Jetrader - Summer 2014 - 25
Jetrader - Summer 2014 - ISTAT Americas 2014
Jetrader - Summer 2014 - 27
Jetrader - Summer 2014 - 28
Jetrader - Summer 2014 - 29
Jetrader - Summer 2014 - 30
Jetrader - Summer 2014 - 31
Jetrader - Summer 2014 - 32
Jetrader - Summer 2014 - 33
Jetrader - Summer 2014 - 34
Jetrader - Summer 2014 - 35
Jetrader - Summer 2014 - 36
Jetrader - Summer 2014 - 37
Jetrader - Summer 2014 - 38
Jetrader - Summer 2014 - In Memory of Gilbert W. Speed
Jetrader - Summer 2014 - 40
Jetrader - Summer 2014 - 41
Jetrader - Summer 2014 - A Long Overdue Thank You
Jetrader - Summer 2014 - 43
Jetrader - Summer 2014 - 44
Jetrader - Summer 2014 - Bundle…Down
Jetrader - Summer 2014 - 46
Jetrader - Summer 2014 - ISTAT Foundation
Jetrader - Summer 2014 - Aviation History
Jetrader - Summer 2014 - 49
Jetrader - Summer 2014 - 50
Jetrader - Summer 2014 - 51
Jetrader - Summer 2014 - 52
Jetrader - Summer 2014 - Aircraft Appraisals
Jetrader - Summer 2014 - 54
Jetrader - Summer 2014 - 55
Jetrader - Summer 2014 - 56
Jetrader - Summer 2014 - East Meets West in Istanbul
Jetrader - Summer 2014 - Advertiser Index
Jetrader - Summer 2014 - cover3
Jetrader - Summer 2014 - cover4
https://www.nxtbook.com/naylor/ISTS/ISTQ0418
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