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There should definitely be a cap and not this hideous amount between $800 and $1200. $400 is enough compensation and is probably a fair average of a one-way fare. I checked in a passenger on a $98.00 fare from east coast to Las Vegas the other day; I hardly think he should get $800 or up to $1200 to “compensate” him if he were bumped. Does this country allow airlines (businesses) to run as a business and not a bank ?
I agree with Msolo and frequentflyer comments