Airline Compensation - Is There Such A Thing?

AIRLINE COMPENSATION

Fact or Fiction?

You’re packed, ready for your fun-filled vacation, checked into your flight, got your ticket and ready to go to the airport. But Wait! You just got a notification that your fight is canceled? What do you do now?

All of us had experienced this situation in our lifetime dealing with airlines canceling our flight, delays, bumping, or giving up our seat.  It’s frustrating, stressful and surely aggravating.  So, what do we do?  Spend countless hours on the phone trying to reach the airline or with the online vendor (ex: Expedia) to find out what happened, only to get even more frustrated to be on hold for over an hour?  Check the weather, internet, or news feed for any news?

In 1995, major airlines such as Delta, United, America West, Continental, and US Airways starting cutting back on travel agent commissions for any airline tickets they would book for their clients. Those and many others that jumped on the ban wagon claimed that it was "…… something we had to do. Those commissions cost us $1.3 billion a year -- our third-largest expense behind payroll and fuel." says Todd Clay of Delta Airlines.  However, the repercussions of this event not only put travel agents out of business but gave airlines the opportunity to charge numerous fees to consumers they never had to pay before! In addition, customer frustrations, outbursts, and confrontations grew rapidly making the airline industry even more undesirable.

This is where we step in.  As I always say, call your travel agent first!  They will be a hard advocate for you, getting you the information in an instance notice and make your situation less stressful. If not, here are some helpful tips and information by Consumer Action.org as to what kind of compensation, if any, you might be able to receive from the airline:

Delayed flights

Airlines have to let you know promptly if your flight will be delayed more than 30 minutes. Beyond that, every airline sets its own policies about what it will do for delayed passengers at the airport; there are no federal requirements. You can find an airline's policies listed in its "contracts of carriage."

An airline might provide things like meal vouchers and, for overnight delays, free hotel accommodations, but the law doesn't mandate compensation for delayed domestic flights. On certain international flights, however, airlines are liable for damages unless the airline can prove it did everything possible to prevent the repercussions of the delay or that there was nothing it could do (for example, a delay due to bad weather or a workers' strike).

If you foresee a lengthy delay, you can try to arrange another flight with the same airline. This is typically easier done by phone than at the service desk at the airport. Confirm that you won't be charged a cancellation or change fee or have to pay a higher fare.

If you find a flight on another airline and you would like to switch, ask the airline where you hold a ticket if it can arrange to transfer your ticket to a different carrier. The law doesn't require the airline to do this, but it might make the switch to keep you happy.

Delays don't always happen before you get on the plane. If you're stuck on the tarmac (runway) and you're on a domestic flight, the DOT requires airlines to let passengers get off in no more than three hours (domestic) or four hours (international) unless there's a safety, security or "airport operations" reason why the plane can't taxi to the gate and unload. 

Airlines also have to provide passengers with food and water no later than two hours after the tarmac delay begins, and bathrooms must remain available. However, if you get off the plane during a tarmac delay, the airline isn't required to let you back on, and it isn't required to offload your checked baggage before taking off without you!

Delays or Cancelations that Don’t Require Compensation

Bad weather, air traffic delays, and mechanical issues can be difficult to predict and sometimes outside of the control of the airline. With that said, passengers are not required to be compensated by the airline if your flight is delayed or canceled for these bad weather, air traffic delays, or mechanical issues.

If you find yourself with a delayed flight due to one of these reasons, ask the original airline if it will pay for a ticket on another airline. The DOT does not require the airline to offer compensation but it doesn’t hurt to ask.

With no federal compensation requirement for delayed passengers, refer to the policies of the operating airline to determine what compensation the airline will offer. If a significant delay occurs, ask the airline if it will compensate you for meals during the delay.

If the airline doesn’t immediately offer you compensation for your meals or expenses incurred during the delay, you may be able to get reimbursed for expenses incurred under Article 19 of the Montreal Convention by filing a claim with the airline. If that claim is denied, you could also pursue reimbursement in court.

For travelers with a canceled flight, the airline should rebook you on its first flight with available space to your destination at no additional charge. If the rebooked flight requires a significant delay, ask the original airline if it will pay for a ticket on another airline.

Tarmac Delays

Another situation that may arise that does not require compensation is a tarmac delay on a domestic flight. These can occur before taking off or after landing. The DOT prohibits most U.S. airlines from remaining on the tarmac for more than 3 hours unless one of the following occurs:

• a safety or security risk occurs and the pilot determines the aircraft cannot taxi to the gate and deplane its passengers

• air traffic control determines that there would be significant interruptions in airport operations if it allowed the pilot to taxi to the gate or another location to deplane passengers

If you experience a tarmac delay on an international flight operated by a U.S. airline, the DOT time limits do not apply. Any time limits and/or corresponding protocols are set by the airlines.

U.S. airlines must provide passengers on domestic and international flights with food and water no later than two hours after a tarmac delay begins. The airline is required to keep the lavatories operable and medical attention must be available.

Canceled flights

Believe it or not, U.S. airlines are not required to compensate passengers when their domestic flight is delayed or canceled. If your flight is canceled, most airlines will rebook you on their next available flight to your destination. But that can mean days of delay until they can book you on a replacement flight. If you face a significant delay to your destination, ask if the airline will transfer your ticket to another carrier if you can find an earlier flight with another company. You can also ask for a full refund and use that money to book a flight on a different airline. (If a canceled flight means an overnight stay, airlines sometimes put non-local passengers up in a hotel and/or pay for meals, but, again, this isn't required by law.)

Tip: If a delayed or canceled flight is going to have serious consequences for you, fly in the morning (when delays are less likely) and choose an airline that has multiple daily flights to your destination so that you have a better chance of getting on another one.

Getting 'bumped'

Overbooking is not illegal. As a result, passengers are sometimes "bumped" (left without a seat on the flight). When this happens, the airline will try to entice passengers to give up their seats voluntarily in exchange for compensation—usually travel vouchers, since airlines aren't required to pay cash to volunteers.

If you are involuntarily bumped, the DOT requires the airline to get you to your destination within one hour of the originally scheduled arrival or pay you in cash or check immediately for a longer delay. The amount of compensation is based on the length of the delay and the price of the ticket.

According to FlyersRights.org, arriving one to two hours late on a domestic flight (or one to four hours late on an international flight) entitles you to 200 percent of your one-way fare, up to $675. If the delay is longer, the airline owes you 400 percent of the one-way fare, up to $1,350. However, after news outlets ran video of a United Airlines passenger being violently dragged off a flight to make room for commuting crew in 2017, United (and later Delta) upped the compensation for those who are bumped to as much as $10,000. To be eligible for compensation, you have to check in for your flight by the "deadline."

The DOT requires airlines to give involuntarily bumped passengers their rights in writing, along with an explanation of how the carrier decides who gets bumped (often based on the fare paid and frequent flyer status). But getting to the airport early and checking in before other passengers is good protection against losing your seat.

If you choose to make your own flight arrangements after being bumped, you can request an "involuntary refund" for your ticket and use that money for the new flight. If you paid for optional services on your original flight (for example, seat selection or checked baggage) and you did not receive those services on your substitute flight or were required to pay a second time, the airline that bumped you must refund those fees.

If you've accepted compensation, you have 30 days to try to get more money from the airline. But once you deposit the airline's check, you've agreed to accept what they paid you.

Voluntary

The DOT requires airlines to ask passengers if they are willing to give up their seats in exchange for compensation prior to involuntarily bumping passengers. If you agree to be voluntarily be bumped, the airline will book you on a later flight and will likely provide compensation in the form of vouchers.

Before agreeing to be bumped, ask the airline the following questions to ensure you know what you’re agreeing to:

• When is the next flight that the airline is confirming your seat on?

• Will the airline provide free meals, a hotel room, and/or transportation between the hotel and the airport to cover your costs incurred by agreeing to take a later flight?

It’s important to ask these questions because there is not a standard form or amount of compensation that the DOT mandates. Airlines have the flexibility to negotiate with prospective volunteers so you should know what you’re agreeing to prior to giving up your seat. If the airline offers a free flight or free transportation as compensation, ask if there are any restrictions when redeeming these forms of compensation.

Involuntary

If you are involuntarily bumped, the DOT requires each airline to compensate involuntarily bumped passengers via check or cash. The amount you receive from the airline depends on the price of the ticket you purchased and the length of the delay. The amount you will be compensation is determined by the following factors:

• If you arrive at your destination within 1 hour of your original scheduled arrival time, you will not be compensated.

• If you arrive at your destination between 1-2 hours after your original arrival time, you will be compensated for 200% of your one-way ticket price or a $675 maximum.

• If you arrive at your domestic destination 2+ hours later than your original arrival time, international destination 4+ hours later than your original arrival time, or if the airline does not make substitute travel arrangements for you, you will be compensated for 400% of your one-way ticket price or a $1,350 maximum.

• If you’re on an award flight or bought a ticket through a consolidator, you will be compensated for the price of your same fare class for your flight.

• If you deny the airline’s rebooking flight and choose to book your own flight, you will be compensated for the price of the ticket you purchased.

• If you paid additional charges for seats, checked baggage, Wi-Fi, etc., and did not receive those services on your rebooked flight or were required to pay for those services again, you will be compensated for the price of those optional services. 

Unfortunately, there are conditions and exceptions to the compensation rules above. These conditions and exceptions are:

• If you do not have a confirmed reservation, you will not be compensated.
• If you miss your check-in deadline, you will likely not be compensated.
• If the airline must substitute a smaller plane than the one you booked, you will not be compensated.
• If the flight has 30-60 seats and bumps you due to safety-related aircraft weight or balance constraints, you will not be compensated.
• If you booked a chartered flight and are bumped, you will not be compensated.
• If you booked a flight with fewer than 30 seats, you will not be compensated.
• If you booked an international flight inbound to the U.S., you are not required to be compensated.

Lastly, if being bumped costs you more money than the airline will pay you at the airport, you can try to negotiate a higher reimbursement with the airline’s complaint department. If you decline the compensation and are unable to receive higher compensation from the airline’s complaint department, you can take the airline to court.

Overbooking
Overbooking is a strategy airlines use to ensure a full flight and accounts for passenger “no-shows”. When a flight is overbooked, the DOT requires airlines to compensate for voluntary and involuntarily bumped passengers.  To better understanding these definitions:

Voluntary bumping is when an airline asks passengers to voluntarily give up their seats in exchange for compensation.
Involuntary bumping is when an airline bumps passengers against their will but still compensates the passengers.

BOTTOM LINE!

Every passenger’s situation is unique. If you find that your flight is canceled delayed, your bag has been damaged, delayed, or lost, or the flight is overbooked, we recommend that you call your Travel Agent!

Please feel free to comment as I would love to hear from you.

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