Bumped Flyers Get Higher Refunds Due to DOT Regulation

As airlines try to squeeze more profits out of flights, and gas prices continue to rise, and consumers use internet price comparison services, things are going to get a lot tougher on the airlines with a new DOT Rule. According to the DOT consumers who are bumped because of overbooking are now entitled to a compensation:

Under one new rule, passengers who get bumped off overbooked flights will be eligible to receive twice as much compensation from U.S. airlines. But ticket prices are expected to spike as a result of another rule designed to ease congestion tied to the New York-area’s clogged airports.

and

Travelers forced onto another flight that takes them to their domestic destination more than two hours after their original arrival time will be paid the full price of their fare up to $800, under a new Transportation Department rule that goes into effect next month. If bumped passengers arrive less than two hours late, the limit is $400.

via CNN

Most industry analysts see this as being good for consumers but feel airlines will be forced to raise prices.

photo credit: SC Fiasco

Tags: airlines | dot