Thursday, April 17, 2008

Denied Boarding Compensation going up to $800

Starting next month, if you are involuntarily denied boarding on a U.S-based carrier, the airline must pay you up to $800 for the inconvenience. You can thank the Department of Transportation for following through with their commitment to improve the passenger flying experience.

How it works: You have a confirmed reservation, but the flight is oversold. The airline will ask for volunteers to be "bumped." If too few people volunteer, the airline is forced to involuntarily deny boarding to selected passengers, often those who check-in late or without seat assignments.

Under previous rules, the airlines would pay $200 for many involuntary denied boardings, and $400 if you arrived more than 4 hours later than your originally scheduled time. This compensation hasn't been revised since 1978. But starting in May, these payouts double!