DOT doubles denied-boarding compensation
Travel Weekly, 4/16/2008 (excerpted)
The Transportation Department published a final rule updating its denied-boarding regulations.
Among other things, the rule change on oversales will double the usual compensation and extend the coverage of the rule to smaller aircraft (those with 30 to 60 seats). Previously, operations using aircraft with fewer than 60 seats were exempt.
The basic features of the rule are unchanged. Airlines must ask for volunteers in an oversale situation before bumping any passenger involuntarily. The compensation for involuntary bumping is twice the fare (including tax), to a maximum of $800 plus alternate transportation. If the passenger can be rerouted to arrive at his or her destination within two hours of the original schedule (four hours on international flights), the compensation is halved, with a $400 maximum.
The new limits go into effect in 30 days.