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I think we are all looking in the wrong direction on this issue. Instead of agonizing over any set of compensation for bumping rules, the solution, with explanation later here, is: NO BUMPING! No bumping could only happen with another solution: NO OVERSELLING! Is that economically feasible for airlines? Yes, of course, given certain conditions that could be applied to ALL flights. Let me spin it:
An airplane flight is no different than any other event, let’s say like a concert. Once the concert promoter sells all his seat inventory, he’s done. He collects his money and moves on. Imagine what would happen if the concert promoter was allowed to sell 20% more tickets than he had seats?
Same can apply for any air flight. Let the airline sell all his inventory of seats… more »
Remember, if you buy that ticket to the concert and don’t make it, no concert company is going to give you your money back. But this concept could spawn another business, such as one that would insure you if you miss your flight for other than being bumped reasons. That company could take ALL of the costs involved into consideration (if you miss your flight and then lose your cruise costs or non refundable travel/hotel costs, etc.) before giving you a premium that would cover the risk. That calculation is available well before the time that any passenger would miss a flight, so there’s no last minute figuring that would have to take place.
So, that’s it. NO OVERBOOKING. NO CREDITS OF ANY KIND FOR MISSING THE FLIGHT. NO MORE PROBLEMS!!