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Compensation should be kept with a dollar amount basis, as the amount of the fare may not be suitable to cover expenses, such as food or lodging.
Smaller aircraft do need compensation, however it should be based on what the alternative travel options are. Typically, a smaller connecting flight will be either close to home, or close to the destination, where the traveler may want to opt for a rental car or taxi instead.
Zero-fare tickets may not need monetary compensation, as they did not pay out of pocket for the flight, but in addition to being re-booked, the miles or points redeemed should be credited back to the account. It would not be fair for people using zero-fare tickets to walk out with cash-in-hand.
The biggest issue with overbooking is that people are not informed of their options.… more »
My recent experience with an overbooking, they were looking for volunteers, and I hesitated because I saw a few people already list their names. I did not know if they needed more. Also, they only announced that the next flight was just over an hour later. They did not mention the fact that the flight was not nonstop like the one we were listed on, but with a 5 hour layover. « less
This is an interesting point on the rights of volunteers to be bumped. The proposed rule has requirements for written explanations by airlines, in Section 250.9. Should this be explicitly extended to those who volunteer to be bumped? Or are these rights not enough?