Overbooking payoffs

Sunday, August 24, 2008 around 10 am mountain

The New York Times has details on the airline industry’s requirements for paying off passengers bumped off their flights.

Travelers can now receive up to $400 if they are involuntarily bumped and rebooked on another flight within two hours after their original domestic flight time and within four hours for international. They are eligible for up to $800 in cash if they are not rerouted by then. The final amount depends on the length of the flight and the price paid for the ticket.

Even stricter rules apply in Europe, where compensation ranges from 125 euros (about $185) to 600 euros (about $888), depending on the length of the flight and the amount of time the passenger will be delayed.

Compensation must be paid immediately in cash, or with a voucher if the passenger accepts it, and the airline must offer a choice of a refund, a return flight to their departure city or an alternative flight. Volunteers also receive compensation, which they negotiate with the airline.

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