Tarmac delay study concludes that DOT's rules have signifant negative impact on passenger travel time and welfare

DOT responds to the study as being misleading. Welfare negative  The authors conclude the net public welfare isn't positive as claimed, it's negative $4 billion over the same 20 year period. Cancellations The authors observe a 4:1 cancellation ratio. For every tarmac delay prevented, they see four flights directly cancelled. Fine structure leads to distorted airline behavior The punitive fine structure, ambiguous regulatory language and unclear enforcement have distorted airline behavior. Conclusion: public costs far in excess of benefits The authors conclude that DOT’s tarmac rules and punitive fine threats have driven significant cancellations and public costs far in excess of quantifiable benefits. A transparent, rational fine structure, publicly available and disclosed, will reduce cancellations resulting from airlines’ extreme risk-aversion and minimize the public costs. The underlying tarmac delay rules, particularly those related to weather-driven taxi-out delays, should be re-examined by regulators, legislators and consumers to determine if the trade-offs inherent are in the public interest. Tarmac delay study research paper and other materials: Marks, J. & D. Jenkins (20 July 2010) 'Impact of three-hour tarmac delay rules and fines on passenger travel time and welfare' DOT press release (20 July 2010) 'DOT Responds to Questionable Study on Airline Cancellations'