The Department of Transportation in a final rule released today said it will double the maximum amount airlines must compensate involuntarily bumped passengers. Though the ruling came amid fierce opposition from air carriers, DOT said it would go into effect in 30 days.
Under the rule, passengers who are involuntarily bumped would receive compensation equal to their one-way fare up to $400 if they are rescheduled to reach their destination within two hours of their original arrival time for domestic and four hours for international flights, and $800 if they reach their destination after those times.
"It has been 25 years since the rule was last revised, and the existing $200 and $400 limits on the amount of required denied boarding compensation for passengers involuntarily denied boarding have not been raised since 1978," DOT said in the filing. "The Department has received recommendations from various sources that it reexamine its oversales rule and, in particular, the maximum amounts of compensation set forth in the rule."
DOT said it also would make the rules applicable to aircraft that seat between 30 and 60 people, which previously had been exempt from the denied boarding standards.
According to DOT figures, denied boardings steadily have increased since 2001, reaching a record high last year of 1.12 for every 10,000 passengers. President George W. Bush last year proposed to raise denied boarding compensation caused by airline oversales following mounting public outcry over airline service
(BTNonline, Nov. 15, 2007).