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Business Traveller

Bill of Rights; Inside Continental Airlines; Spy Museum

Aired April 14, 2007 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

RICHARD QUEST, CNN CORRESPONDENT: Hello and welcome to CNN BUSINESS TRAVELLER. I'm Richard Quest, reporting from Washington, D.C.
This month we are all about rights. The rights that we enjoy as members of the traveling public. The compensation when things go wrong.

We're in Washington because the U.S. Congress is about to consider enshrining into law regulations that mean we will get compensation for delays and cancellations.

We'll be talking to the congressman who's sponsoring that bill a little later in the program.

Also coming up, (UNINTELLIGIBLE), bunkers and Boeings. We go behind the scenes to see how an airline copes with delays.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This flight was supposed to leave at 10:50. Now it's delayed until 6:00 a.m.

(END VIDEO CLIP)

QUEST: And life in the shadows at (UNINTELLIGIBLE) museum.

It is a beautiful spring day here in Washington. In just a few weeks, they'll be celebrating the cherry blossom season. It's a welcome relief after the grim winter in the northern hemisphere, where bad weather reeked havoc and misery to the traveling public.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: You may wait in the tent. You may wait outside of the tent. But you will not be allowed into the terminal building.

(END VIDEO CLIP)

QUEST: It was a miserable Christmas for passengers through Heathrow. Three days of heavy pouring and 1,000 flights were canceled; 70,000 passengers faced long lines, hours of delay and anger. Humiliated to management of the world's busiest international airport.

For JetBlue passengers in the United States, Valentine's Day was one of hate, not love. The airline's planning for bad weather failed. It canceled half their 500 flights.

But often after passengers like Genevieve McCaw and her partner, Charlie Becker had been stranded onboard grounded planes for hours.

(BEGIN VIDEO CLIP)

GENEVIEVE MCCAW, JETBLUE PASSENGER: We heard about the weather delay -- well, the problems with the weather the day before. So I called about every two hours up until we left. And I even called right when we left, and every single time I called they said there were no delays in the flight.

CHARLIE BECKER, JETBLUE PASSENGER: Right.

MCCAW: We get there, there was no delay in boarding us. And then we sat on the plane for 10-1/2 hours and didn't leave. So that was our Valentine's Day together.

(END VIDEO CLIP)

QUEST: Facing a public relations disaster, JetBlue broke ranks with the rest of the industry and published a bill of rights, a commitment to treat passengers better.

The airline turned down our invitation to appear on this program and explained why the bill of rights is the right answer. After all, passenger advocates like Al Anolik believe it's only a start, and nowhere near enough.

The author of "Traveler's Rights" says, mandatory compensation is the only solution, hitting the airlines in the pocket.

(BEGIN VIDEO CLIP)

AL ANOLIK, AUTHOR: Right now they know it's easier for them to cancel a flight because there's no compensation for delays or cancellation, and make all the passengers take the next flight where there's space. They can get away with that now. And we're saying that if you at least give us minimal compensations, then they'll think twice about it.

(END VIDEO CLIP)

QUEST: Europe already has gone down the route of regulation.

There are rules that give passengers the right to compensation for delays and cancellations. Yet, even though the airlines have a get-out clause, that the delay is beyond their control, the regulation is very unpopular with the industry.

(BEGIN VIDEO CLIP)

ANTHONY CONCIL, IATA: And we had a problem that was generating a small number of complaints to the European commission each year; 600, 800, by their own recordkeeping. And then we ended up with $600 million worth of cost added to the industry because of this very prescriptive legislation that was brought in.

(END VIDEO CLIP)

QUEST: The European commission, on the other hand, is unapologetic.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The rule of the leader is to protect the seats then by offering minimum rides and standards for the laws of transports. If the operators would behave in a correct way, as loyal partners, leader probably would not have to (UNINTELLIGIBLE) on so many issues.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

QUEST: So you have real experience of what these delays...

UNIDENTIFIED MALE: I've logged over a million miles since I've been in Congress.

(END VIDEO CLIP)

QUEST: Back in the United States, the traveler's misery over the past six months has finally been heard in Washington.

The Californian Congressman Mike Thompson has proposed a law that would give passengers mandatory rights. It's based on the European experience.

(BEGIN VIDEOTAPE)

REP. MIKE THOMPSON (D), CALIFORNIA: I don't know any passenger that wants to be held hostage on an airline on the tarmac for nine hours. And that's the situation that brought it to my attention.

I had constituents who had flown for two and a half hours, were diverted and then spent the next nine hours on the tarmac. The toilets weren't working properly. There was no clean water to drink. There were all kinds of problems that put these people in a real miserable situation.

I don't think it was good for them. I don't think it was good for the airlines.

QUEST: The bill you put forward is very detailed in terms of the number of hours, what has to happen. By making such a detailed restriction, does that not tie the airline's hands?

THOMPSON: Absolutely not. What the bill says is that after three hours, passengers have the right to deplane if they desire and it's safe to do so. It also, if you -- if you read the bill, states that if the pilot believes within a certain frame of reasonability that they're going to take off within the next 30 minutes, that can be delayed twice. So it's up to four hours.

QUEST: The EU already has such a bill of rights. But the airlines use the get-out clauses to avoid compensation by claiming extraordinary circumstances. Will your bill suffer the same problem?

THOMPSON: Well, it doesn't matter if it's a loophole, if it's a weather delay or if it's an infrastructure shortage. If a passenger is on an airplane after a reasonable amount of time, they should be allowed to get off. And while they're on that airplane, the toilets should work and they should have clean drinking water. And that's pretty much the guts of this bill.

QUEST: Congressman, can this become law?

THOMPSON: With enough votes, anything can become laws.

(END VIDEOTAPE)

QUEST: With governments around the world considering new laws to protect passenger rights, perhaps we'd all do well to remember the words of Abraham Lincoln, whose memorial is at the heart of Washington. Lincoln said: Discourage the temptation. Persuade your neighbors to compromise whenever you can.

So, in the spirit of compromise, let's consider the position from the airline's point of view.

How do they handle major disruption?

When we come back, we're off to Houston to visit Continental Airlines.

(COMMERCIAL BREAK)

QUEST: Welcome back to CNN BUSINESS TRAVELLER. I've now flown about 1,200 miles south to Houston, Texas, to the headquarters of Continental Airlines, America's fifth largest carrier.

All too often when we're flying, we feel we're just small cogs in the machine, that no one really cares. So, we're going to meet the people who are actually controlling this airline to see how it is they ensure we do get to our destinations pretty much on time.

And I can tell you it's a complicated business running an airline.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Let's get roll call and see who's on the phones out there.

UNIDENTIFIED MALE: Hey Mike, good morning, Houston.

UNIDENTIFIED MALE: John Weimer (ph) from Express JetBlue.

QUEST (voice-over): 8:30 in the morning and at the Houston Headquarters of Continental Airlines, the system-wide conference call is underway. This is a chance to brief top management on how the airline performed over the past 24 hours, and prepare everyone for problems ahead that might affect the airline's 1,200 daily flights.

UNIDENTIFIED MALE: We're going to have a challenging day today with the weather. We have thunderstorms basically from about northern Michigan, southwestward through...

QUEST: The bad weather, the promised troubles for travelers was being widely reported on America's breakfast television.

ROB MARCIANO, CNN METEOROLOGIST: ... red blotch on the map and that indicates the threat for severe weather. Could see some extreme weather. We've already seen it over night in the way of heavy rains across Chicago, especially north of Chicago.

QUEST: The Midwest storms mean just one thing -- headaches at the airline's systems operations center. It's the heart of Continental and runs the entire system. Every plane, every flight and every passenger across the network is being tracked right here.

So this yellow is indicating late flights?

MIKE BIELKE, SENIOR OPERATIONS DIRECTOR: Yes.

QUEST: Delayed flights?

BIELKE: Delayed flights.

QUEST: Which ones are causing you concern?

BIELKE: Oh, the Chicago flights.

QUEST: What's the worst flight at the moment?

BIELKE: Looks like 1145 at Midway, which is an airport right near Chicago.

QUEST (on camera): To where?

BIELKE: To Newark.

QUEST: Yes?

BIELKE: And it's estimated an hour and 45 minutes late.

QUEST (voice-over): Delays threaten the turnaround time and the next lag of a passenger flight. Once the delays are spotted, the system swings into action.

Will passengers miss their connections? Can an earlier landing slot be freed up? What should be done to keep the network moving?

JULIE GEIST, CUSTOMER SERVICE: We look at every flight. I mean, I know people think, oh, they don't -- they're not watching my connection. Nobody's checking my connection. But we are. We are literally going through every flight and checking every -- every connection, every city. And we want everybody to make it.

QUEST: The controllers here liken their job to a complex game of three-dimensional Tetris, with thousands of passengers and planes in the balance. The amount of information at their fingertips is fascinating.

(on camera): Now, I can tell you all sorts of interesting things about this particular flight.

There -- there are 44 passengers in first, 228 passengers in economy. That's a load factor of 96 percent. But the interesting number from the business point of view if what?

UNIDENTIFIED MALE: $264,388 of revenue on that segment.

QUEST: Quarter of a million dollars in one flight alone.

(voice-over): Canceling is very much a last resort. Something the vice president of operations is at pains to explain.

MARK MORAN, EXECUTIVE VICE PRESIDENT OF OPERATIONS: When you have an irregular operation, the natural tendency is you have longer lines. So this summer we're rolling out kiosk where people can go to if there is a line to swipe their boarding pass and be re-accommodated immediately.

That whole uncertainty is what causes a lot of stress in the customer and gives the feeling that no one knows what they're doing. And -- and then there are certain events that are out of our control.

QUEST: Protecting the operations center is paramount. Without it, Continental Airlines will start to shut down within 15 minutes.

To cover any possible contingency, such as a hurricane in Houston bringing the airline to its knees, there's a copy of this flaw at a secret location 60 miles away.

JOHN W. STELLY, MANAGING DIRECTOR OF TECHNOLOGY: We've got 275 work stations in here. As you can see, they are on 24 hours a day. So that all of our employees have to do is come in, log in and can resume the operation for Continental on a moment's notice.

QUEST: The fascinating bit is outside -- 50 feet below these Japanese Bogotas (ph), they're actually gun (UNINTELLIGIBLE), would you believe.

This was built as a private cold war bunker by (UNINTELLIGIBLE) nephew in the 80s.

The underground blast shelter stood empty following the collapse of the oil company.

(on camera): This gives you a sense of what the bunker's like in an unimproved state. And in its original design, this was actually living quarters.

(voice-over): 40,000 square feet, over two floors.

(on camera): This facility was originally designed to support up to 700 people for 60 to 90 days.

(voice-over): Now, it's the indestructible home of Continental's plan B.

(on camera): So we've got all the computing power here necessary to run that facility that you saw up in the building.

Although there are no plans to use the prison cells in the derelict operating theater.

(END VIDEOTAPE)

In four years of doing BUSINESS TRAVELLER, I can honestly say I've never seen anything like it. One man's folly now being used to keep an airline flying.

I hope we've managed to give you an idea of how far the airlines will go to help get you to your destination on time.

Things will always go wrong, but at least you now know, yes, the airline does care.

When we come back, the center of power in the most powerful city in the world, the Watergate.

It's off to Washington again for an insider's look at the capitol.

(COMMERCIAL BREAK)

QUEST: Welcome back to CNN BUSINESS TRAVELLER in Washington.

In this building, the National Archives, rests one of the world's most important documents -- the U.S. Constitution, along with the Bill of Rights, setting out the relationship between government and the individual.

Well, so far in this program we've talked a lot about the relationship between you and your airline.

But air travel is only a small part of the business trip. What about your rights on the ground and when on the move?

(BEGIN VIDEOTAPE)

QUEST (voice-over): If you're going to take a cab ride, you better take it with the commissioner.

(on camera): Now let's read my rights. I have the right to go to any destination in -- within (UNINTELLIGIBLE) in New York. I can direct the route taken.

MATTHEW W. DAUS, NWC TAXI & LIMOUSINE COMMISSIONER: That's correct.

QUEST: I'm entitled to a safe and courteous level -- are you safe and courteous, Cliff?

UNIDENTIFIED MALE: Always.

QUEST: What's the biggest problem that passengers have in the back of cabs?

DAUS: Well, certainly, I think the big -- the biggest complaint we've been getting recently is drivers talking on their cell phones. And now they have these Bluetooth devices, where it's hard for us to enforce the law against them. So we rely heavily on passengers reporting instances of drivers using the cell phones.

I mean, it is a tough job. They work long hours and they want to talk to people. But the law requires that while they're driving, they can't talk. That's the biggest complaint that we get.

QUEST: Hello. I have a reservation. Name of Quest.

UNIDENTIFIED MALE: I'm afraid, can't find your booking.

QUEST: What? Is it under another name? (UNINTELLIGIBLE) my name.

UNIDENTIFIED MALE: Was it today, not yesterday, or not...

QUEST: I'm not an idiot.

JOANNE BARKER, WHICH? LEGAL SERVICES: Richard, stay calm. Shouting is not going to help you at all. Remember, if you have a confirmation, double check you got the confirmation number. Are you on time? If you got guaranteed reservations, they have to give you that room. But be polite about it.

QUEST: Look, I'm really very sorry about this. Would you mind having another look.

UNIDENTIFIED MALE: Just a moment.

QUEST: OK, ah, there it is. Thank you very much. A misunderstanding.

BARKER: See Richard, I told you. It's worth making (UNINTELLIGIBLE). If you don't ask, you don't get.

QUEST: Thank you.

Quest, I've got a car booked. A Ford Focus.

UNIDENTIFIED MALE: All right, sir. Thank you.

OK, sir. We don't have a Ford Focus.

QUEST: What? You don't have the car that I booked?

BARKER: Richard, calm down. Most hire companies, when you hire a car, don't offer specific vehicle, just one from a group. And any reputable company, if that car's not available, will offer you a different one from the group.

UNIDENTIFIED MALE: OK, so I don't have the Ford Focus; however, we do have a Gulf (ph) in the same group.

QUEST: You were right.

Now, what about insurance?

UNIDENTIFIED MALE: OK, we offer a variety of insurance and waivers...

QUEST: Yes, but I think that I'm covered on my credit card.

BARKER: Richard, never assume anything. There are a lot of credit card companies have linked insurance, some of them don't. And even when they do, it's only secondary insurance. So you'll need the main insurance anyway.

QUEST: Got the keys. On my way.

BARKER: Not so fast, Richard.

QUEST: Not you again.

BARKER: But I'm here to help. You must make sure you fill out the condition report.

QUEST: What?

UNIDENTIFIED MALE: To be safe, fill out the condition report.

QUEST: The condition report? I -- I always ignore this.

BARKER: But it's important. You have to go over the car and see if it's got any dents or marks on it.

QUEST: Should I note all the little scratches?

BARKER: I'm afraid you have to. If you don't do it now, you'll be paying for them later.

QUEST: All right. Great. Here we go.

You're still here?

BARKER: Richard, you'll need all the help you can get from this backseat driver.

(END VIDEOTAPE)

QUEST: There's tons of trivia and gossip all around Washington if you know where to look.

CNN's Political Editor Bill Schneider showed me around.

(BEGIN VIDEOTAPE)

QUEST: Oh, Bill. Richard. Welcome to Washington.

BILL SCHNEIDER, CNN POLITICAL EDITOR: Thank you.

QUEST: And welcome to the Watergate, the center of power in the most powerful city in the world.

SCHNEIDER: The Watergate.

QUEST: The Watergate.

SCHNEIDER: This is where major Washington scandals take place.

This was the office building where the headquarters of the Democratic Party were located in 1972.

Now, the building we're standing next to now is a university dormitory, a residence. But it was a hotel in those days. And in this hotel, the burglary was actually planned by Gordon Libby (ph) and Howard Hunt. They rented a room here. They took -- they kept watch on this building. They planned the burglary in this hotel. And they carried it out just across the street in what is still the Watergate office building.

This is the spy museum, which is actually the most popular attraction for tourists in Washington.

QUEST: Really?

SCHNEIDER: Yes. If you're a tourist, you must come to the spy museum. It's relatively new and it houses information about all our great spy scandals. And you know what they say about the United States? In Britain, spy scandals are usually about sex. In the United States, they're always about money.

QUEST: I'll leave you here.

(voice-over): Covert, cryptic and deadly. The operations of a spy. This is the perfect place to snoop around the world of espionage.

(on camera): Peter, this is an amazing museum. What was the thinking behind it?

PETER EARNEST, FORMER CIA AGENT: The thinking behind it was to create something that would be unique. There is no -- as far as I know, anywhere in the world -- an international spy museum.

QUEST: The range of bugs and gadgets that people like you used during your career is really quite breathtaking, isn't it?

EARNEST: Gadgets should be used in a very rifle-like fashion. They're not a shotgun approach. So maybe for an operation you may have an occasion to use a single gadget or something else. But you use them very carefully and you use them in a very limited fashion.

QUEST: The changing role of spy craft -- how would you define that?

EARNEST: The big refinement in spy craft, to use that broad term, is of course, the development of extraordinarily refined technical means. Overhead reconnaissance, everything from pigeons, going way back, with little cameras strapped on them, all the way through, of course, planes circling the Soviet Union and then the U2 aircraft, the SR71, and then overhead satellite.

(END VIDEOTAPE)

QUEST: I'm sure there's a few people in this town that know a thing or two about that.

And that's CNN BUSINESS TRAVELLER for this month. I'm Richard Quest, reporting from Washington, D.C.

I bet the occupant of that house doesn't have to worry about traveler's rights.

Wherever your travels may take you, I hope it's profitable. And I'll see you next month.

END

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