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The airline should compensate passengers who get bumped the full fare it would cost at that particular point of time for the customer to buy a ticket on that airplane.
Otherwise, airlines will bump passengers who paid a lower fare.
As a result, for example, if I paid $200 for a ticket and a different passenger paid $800 for a seat on the same airplane and class of service, the airline would have a clear incentive to bump me and not the other passenger – all else equal.
In addition, the airline should compensate the bumped individual for the time they wasted because the airline bumped them. One imperfect way to set a fair amound could be to divide the individual’s salary by 40 h/wk and 50 work weeks per year.
Totally in agreement. It would appear that airlines are now making more money from the “taxes and other fees” than from the “fare” portion of what we pay them. Online travel agent services like Expedia, Travelocity or Orbitz should be required to show the full cost including all applicable taxes.
ANY airline that operates into or out of a US airport should be bound by the same rules, whether flights are regularly scheduled or charter. Otherwise, there is unfair competition.
When an airline “bumps” a passenger it is, in essence, “buying” that ticket back from the passenger to sell it to someone else, and then “purchasing” a new ticket for the bumped passenger on the next available flight. It follows that the airline should pay the prevailing market rate to purchase back the seat in the full flight.
Thanks for the comment dhoic.
Do you think that there should be a cap on the compensation amount as proposed by DOT? Or would you suggest that this should be uncapped.