DOT To Raise Denied Boarding Compensation
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Last Updated: June 04, 2008
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The Department of Transportation (DOT) announced April 16, 2008, that it will double the maximum amount airlines must compensate passengers who are involuntarily denied boarding. The ruling was strongly opposed by the air carriers.
 The DOT said however, that the increases would go into effect in 30 days. Under the rule, passengers who are involuntarily bumped will receive
compensation equal to their one-way fare up to $400 if they are rescheduled to reach their destination within two hours of their original arrival time for domestic flights and four hours for international flights. The mandatory minimum compensation doubles to $800 if passengers reach their destination later than the two- or four-hour limits.
The DOT is also expanding the rule for compensation to apply to aircraft seating between 30 and 60 people, which had been exempt from the previous denied boarding guidelines. According to DOT figures, denied boardings have continued to increase every year since 2001. In 2007, 63,878 passengers were involuntarily denied boarding by the 20 largest carriers reporting those statistics.
Voluntary bumpings were ten-times involuntary figures. The current $200 and $400 limits on compensation for denied boarding compensation have been in effect since 1978. It's interesting to note that those 1978 amounts would be the equivalent of $600 and $1,200 if they were adjusted for inflation.
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