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Let’s keep in mind that a bumped passenger may miss a cruise ship departure, miss a connecting flight, lose a day (or sometimes more) of a prepaid vacation, or miss a wedding or funeral because the airline was greedy and didn’t want even one empty seat on their flight. If being bumped from a flight caused additional problems for the bumped passenger(s) then the passenger(s) should be able to submit proof of loss and the airline should have to compensate WITHOUT LIMIT in addition to the proposed penalties.
I also like the idea of pre notification of bumping. It can cost well over $100 to get to an airport (for example, central NJ to JFK is about $150 and for a long vacation this is cheaper than airport parking). When a passenger is bumped and the next available flight is the next day this can mean an additional $300+ in travel costs.
Should there be any requirement on the part of the passenger to notify the airline of such a connection beforehand? Otherwise, aren’t we making the airline an insurer for someone’s business and/or leisure plans? It may be that we want to do that–but what might be the costs associated with unlimited reimbursements?