Did the airline industry fund controversial tarmac delay study?

A new study by a team of aviation consultants, which claims the government’s new tarmac delay rule will cost the flying public $3.9 billion during the next two decades, is making waves in the aviation industry and beyond.

The Transportation Department yesterday issued a rare rebuttal, in which it called the study “questionable.”

The numbers used by the consultants, it said, were “far too narrow” to yield defensible conclusions about future airline trends. “Further,” it added, “the data reported in May 2010 does not support the industry consultants’ claims about rising numbers of airline cancellations.”

Surely the analysts must have known they were stretching things a little when they based their conclusions on one month of cancellation data. So why do it?

Maybe it was the money.

Some observers have suggested, and others have reported, that the airline industry funded this study. They have good reason to be suspicious: The study’s conclusions reflect the industry’s predictions before the new tarmac delay rule was enacted.

As one commenter on the Chicago Tribune site noted,

I read this story and had to laugh. A ‘study’ by a couple of airline consultants taking one month of data and extrapolating it over many years. The results just happen to echo what the airlines said would happen prior to the rule being implemented. Gee, I wonder who funded the study?

I asked Darryl Jenkins, one of the researchers, who paid for the study.

“Done in house at our own expense to promote our web sites,” he told me in an email. “A lot of fun.”

The other consultant, Joshua Marks, has contracted with airlines on previous projects, according to his site, although it’s unclear if the airline industry or its lobbying arm, the Air Transport Association, had anything to do with this project.

I’m willing to take Jenkins at his word when he says the airline industry didn’t fund this work. What’s more, I agree with many of his conclusions — notably, that the three-hour rule is just too onerous to be practical.

Perhaps the “who paid for the study” question is the wrong one to be asking. Maybe it should be the other way around. If Jenkins and Marks had never received any airline money, either indirectly or directly, would they have undertaken this study?

I think we all know the answer to that question.

(Photo: Francois Roche/Flickr Creative Commons)

  • cjr

    “notably, that the three-hour rule is just too onerous to be practical.”

    It wouldn’t be if the airline industry would be their @#$% together so such lengthy delays wouldn’t be a regular occurrence in the first place.

  • Kevin

    It is quite clear. Since deregulation, the airlines have been becoming more and more arrogant, dishonest and consumer unfriendly. They are inviting regulation as in the 21st Century airline travel has become essential to maintain our current standards of life and support the economy.

    They are running scared and the big boys will do anything to avoid being required to behave ethically. This shows their desperation.

    I have no doubt the Industry paid study came up with the results they were told to come up with instead of showing any results from scientific objective research.

  • Lisa S

    Maybe we should just stop traveling by plane. Maybe we should all get at least 5 weeks vacation annually, as the civilized countries in Europe provide their workers. Ample vacation time would allow people to travel by ship or car or train and make plane travel less necessary to reach places of vacation interest as quick travel time wouldn’t be as important. Car travel is pretty fun if it is done in reasonable chunks of time as opposed to uninterrupted 19-hour drives to New York City (from Chicago). Of course, then fewer Americans would travel to other countries, creating even less interest in other cultures and nations, then the US could offer less foreign aid (good for the federal deficit as that saves about 2% of the annual federal budget), invade more sovereign nations (bad for the federal budget and deficit but great for the military complex industry part of the economy), which in turn will make more people hate the US and potentially increase terrorism, resulting in even more security at airports and air travel becoming even more unpleasant…. Wow, this just spirals out of control, doesn’t it? It would be so much nicer for everyone if everyone behaved politely and treated each other according to the Golden Rule. Since that doesn’t seem likely to happen in the near future, I think the government needs to start protecting consumers from the predatory, unethical, and inhumane treatment of the airline industry–and a whole bunch of other industries, e.g., banking, finance, telecommunications. This is a never ending struggle, isn’t it, Chris?

  • http://www.rentersinsurance.org/ Eric A

    A lot of signs point to deregulation of the financial sector as causing the credit crisis – is deregulation of the airlines likely to cause an “airline crisis” wherein they treat the consumers like crap and steal our money every chance they get.

  • http://www.centreforaviation.com Kathryn Creedy

    The DOT press release, I think, was designed to mislead. I covered the webinar by jenkins and marks and DOT did not even respond to the study’s main contention that its economic assumptions in doing the rule were dead wrong. The number of months of data does not matter. DOT said 21 cancellations per year would result from the rule. In the first month, there were 140. DOT said there would be 131,000 people saved from tarmac delays and the study indicated in the first month there were 416,000 affected by the rule. DOT said it would take max 9 hours to be rebooked and get to destination, the study found the actual number to be 19.

    So, regardless of what DOT says or the dearth of data from more than just a month, if the economic assumptions are so wrong, why is it wrong to suggest we need to revisit the rule?

    Here’s my take on the study and DOT’s reaction.
    http://www.centreforaviation.com/news/2010/07/21/tarmac-delay-rules-to-cost-the-public-welfare-usd4-billion/page1
    Cheers – Kathryn

  • cjr

    “if the economic assumptions are so wrong, why is it wrong to suggest we need to revisit the rule? ”

    I don’t know if the rule needs to be revisited so much as the airlines need to be dealt with severely. The airlines all outright admitted before the rule went into effect that they would either try and get around the rule or, barring that, simply screw passengers over further by canceling flights that I’m sure in many cases need not be canceled.

    But instead, people blame the government. I don’t get it.

  • Ernest

    @Lisa S Maybe we should just stop traveling by plane – – – would allow ow people to travel by ship – – -

    If there was a reliable transit schedule for travel to Europe, I would have quit flying years ago. I don’t fly because it is quick, I fly because there are no other options to get to Europe. In my corner of the rural world, there are no passenger trains or other options. The ‘airport’ is several hours away and it is the only option other than driving, and my car does not float.

    If you happen to come up with an alternative to flying, I’ll buy the first ticket.