NBTA President & CEO, Kevin Maguire, CCTE, said, 'For business travelers, time is money — getting involuntarily bumped can be an expensive proposition. Earlier this year NBTA called for an increase in the compensation due to passengers denied boarding for overbooked flights, and we are pleased that DOT will soon implement such an increase.'
Under the new DOT rule that goes into effect next month, airlines will compensate passengers who are involuntary bumped due to overbooking as follows:
Passengers who are involuntarily bumped and arrive:
Up to 59 minutes late Are entitled to: Zero compensation
1-2 hours late Are entitled to: The lesser of
– 100% of the price of your one-way ticket
2 hours or more late Are entitled to: The lesser of
– 200% of the price of your one-way ticket
The new rule will also expand the compensation rule to cover flights operated with aircraft seating 30 people or more, the current rule covers flights with more than 60 seats. Compensation payments are in addition to the value of the passenger's ticket, which the flyer can apply toward alternate transportation or have refunded.
DOT also announced the opening of additional airspace for pilots to fly around bad weather on west-bound flights out of New York, an area that accounts for much of the nation's air travel delays.
Maguire commented, 'Secretary Peters is to be congratulated for her leadership in developing new ways to ease air travel congestion and delays. While these efforts will certainly improve some of the challenges faced by today's airline passengers, there is much more work to be done. The U.S. now needs to focus on implementing a Next Generation air transportation system for the twenty-first century that will open more currently unused airspace, improve our ability to fly in bad weather and enable planes to move in and out of airports faster.'
The National Business Travel Association (NBTA) is the world's premier business travel organization. U.S.-based NBTA and its regional subsidiaries – NBTA Asia Pacific, NBTA Canada and NBTA Mexico – serve more than 3,200 members in 30 nations around the globe. NBTA has 41 U.S. Chapters with more than 5,000 members. NBTA members are corporate and government travel and meetings managers, as well as travel service providers, who collectively manage and direct more than US$170 billion of global business travel expenditures annually. The association provides industry-leading networking, education & professional development, research, news & information, and advocacy. For more information, visit www.nbta.org.