Cost of bumping passengers goes up

Airlines were ordered Wednesday to pay passengers as much as $800 for being involuntarily bumped from flights starting next month, the latest sign of a get-tough attitude in Washington toward the nation’s air carriers.

A new rule doubling the maximum compensation for bumped passengers is part of a package of measures announced by the Transportation Department to strengthen consumer protections and ease flight delays entering the summer traveling season.

Although in the works for months, the rule is going into effect as U.S. airlines are caught in a storm of bad news concerning aircraft safety, airplane maintenance, flight cancellations and poor treatment of passengers.

Hearings are scheduled for today on Capitol Hill looking into FAA safety issues and the proposed merger of Delta Air Lines and Northwest Airlines.

The amount of money paid to passengers under the new Transportation Department bumping rule is determined by the price of the ticket and the length of the delay. It applies only to those passengers involuntarily bumped – not those passengers who voluntarily take offers of cash and vouchers. In addition, the payments do not apply in the case of cancellations, such as the thousands of scrapped flights that hit American last week.

Passengers who are involuntarily bumped will receive up to $400 if they reach their destination within two hours of their original arrival time (four hours for international destinations).

If the delay is longer, the maximum compensation increases to $800.

The existing limits of $200 and $400 have been in effect since 1978.

The specific amount of compensation is calculated by doubling a traveler’s one-way fare, up to the maximum amounts.

For example, a passenger with a $300 ticket who is bumped from a domestic flight and delayed for more than two hours would receive $600.

The payment is in addition to the value of the passenger’s ticket, which the flier can use for alternate transportation or have refunded if not used. The compensation must be paid in cash or by check, although the passenger can accept a travel voucher.