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DOT’s objective in setting this rule should be to ELIMINATE all bumping, not merely achieve some (unspecified) reduction. Regardless of how many caveats an airline might state in its contract terms, passengers neither want nor deserve a ticket for an oversold seat. Bumping is a purely economic device that treats passengers as economic units devoid of humanity, like so many other aspects of airline behavior.
From that objective, it follows that there should be NO cap on compensation and that the financial penalty to the airline should be strong enough to prevent bumping, not just keep it at some arbitrarily “acceptable” level. The 100% of the total ticket price for expected arrival within 2 hours later is reasonable. Compensation for a longer delay should be the GREATER of 200% of the total ticket cost or the passenger’s demonstrable out-of-pocket costs resulting from the delay (a) including any higher priced air ticket from the same or another carrier at the same class, and lodging, meals and incidentals at average prevailing prices in that metro area, and (b) with the obligation on the passenger to minimize those costs by arranging, with good faith help from the airline, an alternate flight or other means to get him or her to the destination as soon as reasonably practical.
I strongly support cash compensation for bumping passengers with zero-price tickets, e.g., those from frequent-flier programs. But to assure adequate compensation and prevent airlines gaming such a requirement, compensation should be at the average (cash) ticket price for that service class on that flight. DOT’s proposed rule using the lowest fare ticket would encourage airlines to bump those with zero-price tickets first, since that cost would be lowest. As long as they continue to offer tickets for miles, airlines should not be encouraged to treat passengers using those tickets as second-class when it comes to bumping. The growing scarcity of actual seats for miles — something that cries out for regulatory intervention — is bad enough.
DOT’s objective in setting this rule should be to ELIMINATE all bumping, not merely achieve some (unspecified) reduction. Regardless of how many caveats an airline might state in its contract terms, passengers neither want nor deserve a ticket for an oversold seat. Bumping is a purely economic device that treats passengers as economic units devoid of humanity, like so many other aspects of airline behavior.
From that objective, it follows that there should be NO cap on compensation and that the financial penalty to the airline should be strong enough to prevent bumping, not just keep it at some arbitrarily “acceptable” level. The 100% of the total ticket price for expected arrival within 2 hours later is reasonable. Compensation for a longer delay should be the GREATER of 200% of the total ticket cost or the passenger’s demonstrable out-of-pocket costs resulting from the delay (a) including any higher priced air ticket from the same or another carrier at the same class, and lodging, meals and incidentals at average prevailing prices in that metro area, and (b) with the obligation on the passenger to minimize those costs by arranging, with good faith help from the airline, an alternate flight or other means to get him or her to the destination as soon as reasonably practical.
I strongly support cash compensation for bumping passengers with zero-price tickets, e.g., those from frequent-flier programs. But to assure adequate compensation and prevent airlines gaming such a requirement, compensation should be at the average (cash) ticket price for that service class on that flight. DOT’s proposed rule using the lowest fare ticket would encourage airlines to bump those with zero-price tickets first, since that cost would be lowest. As long as they continue to offer tickets for miles, airlines should not be encouraged to treat passengers using those tickets as second-class when it comes to bumping. The growing scarcity of actual seats for miles — something that cries out for regulatory intervention — is bad enough.