New Airline Compensation Rules

[Goofyish]

From 17th February 2005 new European Union legislation mean that passengers who cannot fly because airlines have deliberately sold more tickets than there are seats will receive compensation ranging from €250 (£172) for short-haul flights and €600 (£414) for long-haul flights. The same applies if flights are cancelled at less than 2 weeks notice.
For long-haul delays airlines will have to privide meals and refreshments, as well as free hotels if passengers cannot fly until the next day.

The International Air Travel Association (IATA) has mounted a legal challenge to the new rules though

 

[Miffy2003]

Now is this a good or a bad thing? On the surface, it looks great. But, if airlines can no longer oversell (and we all know they do it), does that ultimately result in a higher ticket price for everyone (with flights with empty seats)?? So they maintain their profits? I'm not saying it will happen, but the profit has to be made somewhere and if they cannot oversell anymore, they will have to find it somehow.

 

[Miffy2003]

Sorry I should have said I think it's absolutely right that people who get bumped off flights get properly compensated.

 

[juliebro]

I suspect it won't make too much of a difference - we have been voluntarily bumped off flights to the US on two occasions in the past two years and got overnight accommodation, meals, $400 each and guaranteed business class travel the next day. So the difference isn't too much. I can't see airlines stopping the overselling - it still makes financial sense to them.

Julie

 

[patdavies]

This is good news for the charter airlines because they do not oversell.

Overselling is done to ensure high passenger loads despite no-shows. This is only a concern for flexible tickets because if you have a non-flexible, non-refundable ticket and don't 'show', the airline will make no loss (in fact, they will marginally increase their profit as they won't need to burn the fuel to carry you and your baggage) as they will keep your fare money.

So unless you are travelling, in the most part, on full fare economy or the higher reaches of business class with a scheduled airline, it won't make any difference.