It's not less of a hassle but having to give up your airline seat will become a little less painful.
Federal officials announced this week a plan to increase the maximum amount that airlines must pay passengers who get bumped off an oversold flight, currently at $400 or $800 depending on how long a trip is delayed. The number of bumping climbed ten percent during the whole of 2009, and is continuing to go up. Just in the first three months of 2010, bumpings have already been up by 17%.
The chances for being bumped have now significantly increased as well. Most airlines have cut back on flights and planes are more crowded, so bumped passengers could wait hours or even days to find alternate arrangements.
Passenger-rights groups have successfully urged the Transportation Department to increase the payout limits to $800 and $1,200 per traveler if the airline bumps you involuntarily. The agency has signaled that it plans some type of inflation adjustment in the limits, which were last raised in 2008.
The main issue is overbooked flights. Airlines sell more tickets than they have seats because they assume that some passengers will not show up. Putting a limit on how many extra seats airlines can sell per flight may be impractical because no-show rates vary by route, day and even hour.
In an overbooked flight, airlines first ask for volunteers before involuntarily bumping ticket holders. While volunteers can get travel vouchers, people forced off flights must be paid in cash or check. Most airlines use this rule when bumping passengers. The Transportation Department recently fined Southwest Airlines $200,000 for that and other shortcomings in its bumping practices.
The government has also introduced other rules to protect airline customers better. One new rule bans airlines from keeping passengers on a plane on the tarmac more than three hours. There are also proposed requirements for more information about advertised fares and checked-bag fees, and for contingency plans when aircraft are stuck on the tarmac for long delays.
