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Senators Demand Answers from Airlines after Recent Outages
JT Genter
Contributor
JT is a location-independent digital nomad traveling 250,000+ miles each year with his wife Katie.
Aug. 17, 2016
•
3 min read
Senators Demand Answers from Airlines after Recent Outages
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Over the past month, there have been large system outages at two of the largest airlines in the nation. Now, a couple of US Senators are demanding answers.
Yesterday, Senators Richard Blumenthal and Edward Markey sent letters to the largest 13 US-based airlines asking what they're doing to fix the problems causing these outages. A copy of the letter sent to Delta has been publicly posted (caution: PDF link).
In addition to requesting information about the cause of past outages and back-up systems in place, the senators are also requesting answers to how airlines respond to such outages. The letter asks for information about whether airlines rebook passengers on other airlines and the "compensation and recourse" the airline provides stranded travelers.
The letter requests that the airlines address and respond to all of these questions by September 16. However, there seems to be no legal requirement for any of the 13 airlines to respond to these requests, so it'll be interesting to see if they choose to discard these requests or comply. The decision might vary from carrier to carrier, as well. Responding might reveal just how fragile an airline's systems are and how traveler-unfriendly its policies are. But, ignoring the senators' request may lead to congressional hearings on the topic — further harming the carrier's reputation.
Consolidation Creates Larger Impact
Recent mergers between Delta/Northwest, Southwest/AirTran, American/US Air and United/Continental have created mass concentration in the airline industry. These four post-merger carriers serve a large majority of the nation's air travel needs. The senators point out in their letter:
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Now that four air carriers control approximately 85 percent of domestic capacity, all it takes is one airline to experience an outage and thousands of passengers could be stranded, resulting in missed business meetings, graduations, weddings, funerals and other prepaid events.
All four of these referenced air carriers have now seen outages over the 13 months:
- Delta (August 2016): Delta Power Outage Leaves Thousands of Passengers Stranded
- Southwest (July 2016): Southwest Airlines’ Computer Glitch Causes FAA to Issue Ground Stop on Its Flights
- American (September 2015): American Airlines Flights Grounded Due to Technical Glitch
- United (July 2015): Computer Bug Grounds United Flights Nationwide
Bottom Line
The airlines have been recording record profits over the past few years, but lack of competition or oversight has created complacency. We are hopeful that this letter from the senators serves as a wake-up call for airlines to address the underlying IT issues that have led to these recent system outages.
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Best for dining at restaurants
TPG Editor‘s Rating
Go to reviewCard Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.