Denied Boarding Compensation to be Reviewed

By | July 10, 2007

We have long said, on the blog and elsewhere, that the best thing that the Federal government could do to encourage change would be to review involuntary denied boarding compensation…The number, set at $400 for passengers forced to wait for a new flight over two hours, $200 for less….has been unchanged since deregulation in 1979…means it is cost effective for airlines to screw passengers to get high-paying last-minute business passengers on the plane…

Considering that airline capacity is being reduced…being bumped off a plane could mean days of waiting for another seat to open up. The Department of Transportation is seeking comment on the issue, asking whether to leave the current limits, eliminating limits and making compensation equal to the value of the ticket with payment doubling for longer delays, double them, or change them to $290 and $580, or $624 and $1248.

They have also asked for comment on other possible changes to the rule, such as extending the rule to aircraft having 30 to 60 seats, which are not currently covered and increasingly used by airlines, and clarifying the criteria airlines may use in deciding the order in which passengers will be bumped.

Our preference is to index link the cost of denied boarding compensation to the factors involved. Ifyou bump someone off a plane and cannot get them on a new one for days….should you not owe them more than if you get them there the same day? Factors used to determine compensation should be: The highest fare sold for a seat in the same class of service on the flight, the original fare paid, and the amount of time it takes to get them to where they are going…to a maximum limit, of course.

Yes…this will force a change in way the industry does business…but if they want to reduce domestic capacity, reallocate seats on international flights, and reduce services…they should accept that if they want to sell more seats than are on the plane(A practice uncommon outside the industry), they will have to provide this form of insurance and assurance to their passengers.

Until recently, we recommended comprehensive travel insurance primarily on international flights. But with the rising cost of tickets..and the increased tendency for problems…basic insurance may be warranted on even the simplest of flights…the most basic insurance sold through a variety of companies is Airline Ticket Protector. It usually covers for trip cancellation, interruption, delay, and baggage delay.

Think about it. Because once this DOT review opens up for comment…we will be surprised if one airline comes out in favor of increasing limits and holding themselves more accountable.

Author: Guru

Guru is the Editor of Flight Wisdom and a long time aviation enthusiast.