IN THE KNOW
said, the bottom line matters. A lot. So each flight has to be profitable; we can’t just have planes flying around with the seats half empty (isn’t it lovely when it happens, though?). The DOT understands this, and allows for the airline to oversell the seats. However, if all the passengers show up, the DOT requires the airline to ask passengers to give up their seats voluntarily, in exchange for compensation, usually for a voucher for a fare similar to the one you paid. But when no one wants to “give it up,” the involuntary “bumping” begins. If you happen to be one of the unlucky passengers to get booted from the flight against your will, you are required to receive a written Statements of Rights; included in this should be an explanation of how that airline decides who gets an oversold ticket. Some factors that the
airline may consider is the price paid for the ticket, whether you were late checking in and whether you have a reserved seat assignment (more difficult to do these days). Regardless of the reason, in most situations the airline is required to compensate the passenger what’s called “Denied Boarding Compensation.” The agent should be able to issue you a check right away, at the gate, in the amount of up to $1300.
FIRST, LET’S UNDERSTAND WHY THE AIRLINES OVERBOOK: THEY ARE SIMPLY TRYING TO COMPENSATE FOR THE “NO-SHOWS”. The DOT recommends arriving to the airport as early as you can to guarantee you get on that plane and reminds us that every airline has different rules
regarding overbooking flights. Arriving early should be normal course for all you travelers out there regardless of the overbooking policies, since most airlines are now requiring you to check in at the actual gate before doling out seat assignments. (And remember, a confirmed seat assignment may be a factor your airline considers when choosing who to bump.) So get there early, head to the gate, confirm your seat and enjoy a Bloody Mary with a side of smug, because you know you’re getting on that flight, oversold or not…
Mark NeJame
Planning Tomorrow... Today!
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Nancy I. Hecht, CFP®, AIF® Certified Financial Planner ™ Nancy Hecht has been in the financial planning field for 30 years. She is a Certified Financial Planner ™ practitioner, and an Investment Advisory Representative. Nancy is a frequent financial contributor to The Orlando Sentinel’s “Money Matters,” The Orlando Business Journal, WDBO’s “On the Money” program, Channel 6 WKMG news, and Channel 35 Fox Orlando.
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