Aviation authorities are set to implement a prohibition on overbooking of flights starting Friday, June 15, 2012. the ban will impose a fine of approximately $116 per passenger bumped, in addition to the other costs that the airlines incur to accommodate the passengers. Oh, and it is happening in the Philippines.
OK, so this isn’t happening in the USA, but it is an interesting move, set to quell the uproar from passengers who are routinely seeing themselves denied boarding on flights in the country. Not surprisingly, the LCCs of the Philippines are protesting the rule, claiming that they will have to increase fares 10% or more to make up for the lost revenue.
In the USA there are some rules to protect passenger rights in such cases but there are no fines levied against the airlines unless the airlines try to avoid the mandated compensation rules. That said, the DoT has been more active recently on passenger rights issues, so it wouldn’t be completely out of reason to see them act similarly, though I still wouldn’t bet on that happening. Then again, with the industry average in the USA at around 1 passenger per 10,000 being denied involuntarily, it also isn’t so clear that such a rule is even necessary.
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