Expert: Roberto Gomes - 9/12/2006

Question
Hi--

When I first heard of overbooking, I thought the idea was brilliant: Airlines can overbook flights, but when they do they must offer whatever it takes to persuade enough of the extra passengers to not take that flight (next flight for free plus $200--or whatever it takes). This is a great way of doing things; airlines don't have "no-show" empty seats and anyone bumped is happy (or he wouldn't have accepted the offer).

However, I recently saw an "Airline" show about Southwest Airlines where Southwest made an offer that no one accepted. While I had thought that Southwest would have to up the offer--to the point where enough people were willing to take a later flight--Southwest simply made one (low) offer and then said it was "policy" to not offer more.

That's some policy: the airline can overbook as much as it wants, offer an amount too small to get enough people off the plane, and simply screw some people who had reservations.

My question: Is it legal for the airline to do this?

Incidentally, I wouldn't be surprised if it is. Three times I have had planes cancelled because of "problems with the air conditioning." In all three cases it was announced that, "fortunately we have another flight in three hours that we can put you on."

It became obvious in all three cases that the real situation was this: each flight was less than half-filled. The airline cancelled the first flight, put those passengers on the second flight, and saved itself the cost of one flight. ("Air conditioning" was the made-up "problem" because they couldn't say "a wing seems a bit loose.)

Many thanks,

Steve

Answer
Steve,

Altough stated in the regulation, airlines always use the original tickets as a part of payment when they transfer you to another carrier. At the end they pay the fare diference to the other airline, along with the compensation paid to the passenger. Rgds R. Gomes

Many thanks. A very helpful answer, It does raise one question, however. You write: If the substitute transportation is scheduled to get you to your destination more than two hours later ...the compensation doubles (200% of your fare, $400 maximum)... You always get to keep your original ticket and use it on another flight." Does the airline pay for the substitute transportation? In other words, if you're bounced and the airline gets you a substitue flight arriving, say, four hours later than the original, do you typically get the substitute flight paid for, some money, and keep your original ticket? Again, many thanks, Steve

Dear Steve,

Take a deep breath ... Here we go !

Overbooking is not illegal, and most airlines overbook their scheduled flights to a certain extent in order to compensate for "no-shows." Passengers are sometimes left behind or "bumped" as a result. When an oversale occurs, the Department of Transportation (DOT) requires airlines to ask people who aren't in a hurry to give up their seats voluntarily, in exchange for compensation. Those passengers bumped against their will are, with a few exceptions, entitled to compensation.

Voluntary bumping

Almost any group of airline passengers includes some people with urgent travel needs and others who may be more concerned about the cost of their tickets than about getting to their destination on time. Our rules require airlines to seek out people who are willing to give up their seats for some compensation before bumping anyone in- voluntarily. Here's how this works. At the check-in or boarding area, airline employees will look for volunteers when it appears that the flight has been oversold. If you're not in a rush to arrive at your next destination, you can give your reservation back to the airline in exchange for compensation and a later flight. But before you do this, you may want to get answers to these important questions:

* When is the next flight on which the airline can confirm your seat? The alternate flight may be just as acceptable to you. On the other hand, if they offer to put you on standby on another flight that's full, you could be stranded.

* Will the airline provide other amenities such as free meals, a hotel room, phone calls, or ground transportation? If not, you might have to spend the money they offer you on food or lodging while you wait for the next flight.

DOT has not said how much the airline has to give volunteers. This means carriers may negotiate with their passengers for a mutually acceptable amount of money-or maybe a free trip or other benefits. Airlines give employees guidelines for bargaining with passengers, and they may select those volunteers willing to sell back their reservations for the lowest price. If the airline offers you a free ticket, ask about restrictions. How long is the ticket good for? Is it "blacked out" during holiday periods when you might want to use it? Can it be used for international flights? Most importantly, can you make a reservation, and if so, how far before departure are you permitted to make it?

Involuntary bumping

DOT requires each airline to give all passengers who are bumped involuntarily a written statement describing their rights and explaining how the carrier decides who gets on an oversold flight and who doesn't. Those travelers who don't get to fly are frequently entitled to an on-the-spot payment of denied boarding compensation. The amount depends on the price of their ticket and the length of the delay:

* If you are bumped involuntarily and the airline arranges substitute transportation that is scheduled to get you to your final destination (including later connections) within one hour of your original scheduled arrival time, there is no compensation.

If the airline arranges substitute transportation that is scheduled to arrive at your destination between one and two hours after your original arrival time (between one and four hours on international flights), the airline must pay you an amount equal to your one-way fare to your final destination, with a $200 maximum.

* If the substitute transportation is scheduled to get you to your destination more than two hours later (four hours internationally), or if the airline does not make any substitute travel arrangements for you, the compensation doubles (200% of your fare, $400 maximum).

* You always get to keep your original ticket and use it on another flight. If you choose to make your own arrangements, you can request an "involuntary refund" for the ticket for the flight you were bumped from. The denied boarding compensation is essentially a payment for your inconvenience.

Like all rules, however, there are a few conditions and exceptions:

* To be eligible for compensation, you must have a confirmed reservation. An "OK" in the Status box of your ticket qualifies you in this regard even if the airline can't find your reservation in the computer, as long as you didn't cancel your reservation or miss a reconfirmation deadline.

* You must meet the airline's deadline for buying your ticket. Discount tickets must usually be purchased within a certain number of days after the reservation was made. Other tickets normally have to be picked up no later than 30 minutes before the flight.

In addition to the ticketing deadline, each airline has a check-in deadline, which is the amount of time before scheduled departure that you must present yourself to the airline at the airport. For domestic flights most carriers have a deadline of 10 minutes before scheduled departure, but some can be an hour or longer. (Many airlines require passengers with advance seat assignments to check in 30 minutes before scheduled departure, even if they already have advance boarding passes. If you miss this deadline you may lose the specific seats you were promised, although not the reservation itself.) Check-in deadlines on international flights can be as much as three hours before scheduled departure time, due partially to security procedures. Some airlines may simply require you to be at the ticket/baggage counter by this time; most, however, require that you get all the way to the boarding area. If you miss the ticketing or check-in deadline, you may have lost your reservation and your right to compensation if the flight is oversold.

* As noted above, no compensation is due if the airline arranges substitute transportation which is scheduled to arrive at your destination within one hour of your originally scheduled arrival time.

* If the airline must substitute a smaller plane for the one it originally planned to use, the carrier isn't required to pay people who are bumped as a result.

* The rules do not apply to charter flights, or to scheduled flights operated with planes that hold 60 or fewer passengers. They don't apply to international flights inbound to the United States, although some airlines on these routes may follow them voluntarily. Also, if you are flying between two foreign cities-from Paris to Rome, for example-these rules will not apply. The European Community has a rule on bumpings that occur in an EC country; ask the airline for details, or contact DOT.

The most effective way to reduce the risk of being bumped is to get to the airport early. On oversold flights the last passengers to check in are usually the first to be bumped, even if they have met the check-in deadline. Allow extra time; assume that the airport access road is backed up, the parking lot is full, and there is a long line at the check-in counter. However, if you arrive so early that your airline has another flight to your destination leaving before the one that you are booked on, either switch to the earlier flight or don't check your bag until after the first flight leaves. If you check your bag right away, it might get put on the earlier flight and remain unattended at your destination airport for hours. Airlines may offer free transportation on future flights in place of a check for denied boarding compensation. However, if you are bumped involuntarily you have the right to insist on a check if that is your preference. Once you cash the check (or accept the free flight), you will probably lose the right to demand more money from the airline later on. However, if being bumped costs you more money than the airline will pay you at the airport, you can try to negotiate a higher settlement with their complaint department. If this doesn't work, you usually have 30 days from the date on the check to decide if you want to accept the amount of the check. You are always free to decline the check and take the airline to court to try to obtain more compensation. The government's denied boarding regulation spells out the airlines' minimum obligation to people they bump involuntarily. Finally, don't be a "no-show." If you are holding confirmed reservations you don't plan to use, notify the airline. If you don't, they will cancel all onward or return reservations on your trip.

Next time that you will be involved in a overbooking situation (in fact the right term is oversale - overbooking may or may not cause an oversale) invoke “RULE 240”.(The term, as it is now used, refers to each airline´s "conditions of carriage" policy)

This will either get an airline agent to act or to look at you as if you’re out of your mind. The term, a remnant from the years before 1978, when airlines were regulated and required to submit fares, routes, schedules and rebooking policies to the government for approval, was never a true rule. Rather, Rule 240 referred to the section of the airline tariff that explained the airlines’ individual policies on what they would do for passengers during a delay or cancellation. In the regulated era, most airlines agreed to transfer a traveler of a canceled flight to another airline provided it could get the traveler to his or her destination sooner. This became known as the Rule 240 transfer.

Today, each airline spells out its customer service commitments, including how it handles canceled flights, in a “contract of carriage,” which can typically be found on the airline’s Web site. A few say they will transfer a passenger of a canceled flight to another line if they don’t offer an alternative of their own within a specific amount of time. Others are less explicit.

Continental’s contract of carriage states that as long as the customer requests it and the ticket has no restrictions against it, the airline will “reaccomodate the passenger in the same class of service on the next available flight on another carrier, or combination of carriers” if the customer’s delay “exceeds two hours.”

United says it will arrange for transportation on another carrier if “unable to provide onward transportation acceptable to the passenger” within 90 minutes of the original scheduled departure.

Airlines will typically offer to transfer customers only to carriers they have interline agreements with, which allow airline partners to accept one another’s tickets. Southwest for example, doesn’t have any formal interline agreements with other airlines.

Other tips:

Choose the right airline.Fly on one that still rewards those with sharp elbows. Some airlines, including Continental, JetBlue and Southwest, still rebook passengers manually for most, if not all, canceled flights. In such cases, a passenger typically has to wait in line to speak to a gate agent or customer service desk agent at the airport or call a reservation line to be rebooked. But either way, who gets on the next flight out basically ends up being whoever gets to the desk. It’s as simple as that.

Start dialing and call your airline or travel agent as soon as you learn your flight is canceled. This can help you jump ahead of passengers waiting in line to be rebooked on airlines that still reaccommodate passengers manually. It can also put you ahead of passengers looking for alternatives when an airline automatically rebooks you on a flight you’re not crazy about.

In certain flight cancellations, American and US Airways will provide passengers with a hot line to reach ticket agents with special training in handling canceled flights.

Altough long, hope this helps.
Best Regards,
R. Gomes