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Feds Propose Changes in Airline Bumping Rule

By Dan Schlossberg
ConsumerAffairs.com

July 9, 2007

The U.S. Department of Transportation (DOT) is considering changes to the rules governing airline oversales, or “bumping,” including a possible increase in the maximum compensation due to passengers bumped from oversold flights.

The bumping rules were first adopted in 1962 to balance the rights of passengers with the needs of air carriers to minimize the effect of passengers with reservations who do not take their flight.

If a flight is oversold, the airline must first seek volunteers who are willing to give up their seats in return for compensation offered by the airline. The airline may bump passengers involuntarily if not enough of them volunteer, and these passengers are eligible for cash compensation in most circumstances.

The rule applies to passengers bumped from an oversold flight that departs without them, not to those affected by delayed or canceled flights.

Under the current rule, if the airline can arrange alternate transportation scheduled to arrive at the passenger’s destination within two hours of the planned arrival time of the oversold flight -- or four hours on international flights -- the compensation is the amount of the fare to the passenger’s destination with a $200 maximum. If the airline cannot meet these deadlines, the amount of compensation doubles, with a $400 maximum.

The payments are in addition to the value of the passenger’s ticket, which the passenger can use for alternate transportation or have refunded if not used.

There are occasions when airlines are not required to pay compensation, for example, where the passenger is provided with alternate transportation scheduled to arrive at the passenger’s destination within one hour of the planned arrival time of the oversold flight.

DOT is considering five proposals:

• Increasing the $200 compensation limit to $624 and the $400 limit to $1,248;
• Increasing the compensation limits to $290 and $580, respectively;
• Doubling the compensation limits to $400 and $800;
• Eliminating all compensation limits and making compensation equal to the value of the ticket with the payment doubling for longer delays; or
• Leaving the current limits in place.

Other possible changes to the bumping rule include extending the rule to aircraft having 30 to 60 seats, which are not currently covered, and clarifying the criteria airlines may use in deciding the order in which passengers will be bumped.

Consumers interested in commenting on the proposals have 60 days to do so. Further information on the Department’s bumping rules is available online

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