Just About Every Government Regulation Has An Unintended Consequence

Something to make airline travel even less desirable:

Continental Airlines plans to cancel flights rather than risk stiff fines under new federal rules designed to punish carriers for delaying passengers.

CEO Jeff Smisek said Tuesday the result will be that passengers will have more trouble getting to their destinations.

A spokesman for the U.S. Transportation Department said airlines can avoid fines by doing a better job of scheduling flights and crews.

Under a Transportation Department rule taking effect next month, airlines can be fined up to $27,500 per passenger if planes are delayed three hours and passengers can't get off.

Smisek said at an investor conference in New York that long delays are rare, and mostly caused by an outdated air traffic control system that the government has failed to upgrade.

Airline industry officials say they should decide whether to wait out delays, even if the delays go past three hours.

Smisek said many passengers on delayed flights "really want to go to LA or Mumbai, but the government by God says, 'We're going to fine you $27,500.' Here's what we're going to do: We're going to cancel the flight."

Because airlines have cut flights, leaving the remaining ones more crowded, passengers will have fewer chances to rebook on another flight. Passengers, he said, won't get to their destinations "for maybe days."