AirlineComplaints.org - Spirit Air Receives Record Fine For Consumer-Rules Violations

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WASHINGTON (Dow Jones)--The Obama administration fined Spirit Airlines Inc. $375,000 Thursday for consumer complaints associated with overbooked flights, lost baggage and improperly advertised fares, as regulators stepped up enforcement of consumer-protection rules.
The amount Spirit agreed to pay - $215,000 - would be the largest-ever paid fine stemming from airline consumer complaints, U.S. officials said. The action comes amid efforts in Congress to pass a "passenger bill of rights" to further crack down on airline consumer abuses.
The Transportation Department accused Florida-based Spirit of failing to compensate passengers involuntarily bumped from overbooked flights. Federal rules require that airlines offer such passengers cash payments of as much as double their ticket price.
Investigators also found that Spirit failed on a number of occasions to compensate passengers for lost baggage "within a reasonable period of time" - 14 months in one instance.
The airline also violated rules by adding a $4.90 "passenger usage fee" to fares advertised in the "Travel Deals" section of its Web site, authorities said. Such fees should be included in the advertised price, investigators said.
Spirit said in a statement that its "ultra low-cost carrier model is the most consumer-friendly airline model in the world."