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by soneil 3357 days ago
I keep seeing $1350 mentioned. It's not a ceiling. $1350 (or 4x the cost of the leg, whichever is lower), is the maximum the airline is legally obligated to offer an involuntary refused-boarding.

They're free to offer $2000, $3000 if they think it's in their best interests (or in this case, cheaper than the inevitable suit). $1350 is just a cap on their legal obligation, not their moral.

3 comments

Indeed. But I also keep thinking that regulation is broken. It should be just 4x, not 4x with a cap. If you paid $2k for the ticket the cap means the airline can steal from you. I'm sure airline lobbyists influenced that regulation.
The airline is left to choose who they'll involuntarily bump. Typically someone paying $2k for a ticket is likely in business class, and they'd only ever bump someone from economy.

Note that the monetary compensation is in addition to rebooking the bumped passenger on a later flight, so even if an economy passenger had paid more than $1350 for the ticket initially, they are still getting $1350 in addition to a seat on another flight.

>> Typically someone paying $2k for a ticket is likely in business class, and they'd only ever bump someone from economy.

That is not true. There are cases of business and first class being bumped (http://www.latimes.com/business/lazarus/la-fi-lazarus-united...).

The guy didn't get bumped; he got moved to a lower class of service. Same rules don't apply there.

Either way, my other point makes this not really matter; the compensation isn't a "refund" for the seat. It's compensation for the inconvenience, and the airline is still required to get you to your destination in addition.

There was an article here yesterday saying that someone got kicked out of a 1st class seat on United plane(after already being seated) because they had to use a different plane that had fewer 1st class seats than the original plane planned for that flight - so after seating him, they kicked him out for a "higher priority" passenger.
>If you paid $2k for the ticket the cap means the airline can steal from you.

I don't have a real opinion on what compensation levels should be. (Although there are enough IDB's that the answer is probably "not enough.") However, in addition to the compensation, the airline still has to get you to your destination.

It's in addition to the original ticket price.
I'm sure you know this, but for the benefit of others: the money from being involuntarily denied boarding (in this case, the $1350 maximum) is cold hard cash. The money they offer to voluntarily give up your seat is vouchers which are only redeemable for travel on the airline and expire after some period (usually 1 year).

The airlines really hate giving up the cold hard cash since it hits their bottom line immediately, whereas the voucher is essentially "free" money.

So even if that rule applied here (which it doesn't), then United would still be in the wrong for not offering up to that limit.