New federal ruling shakes up airline industry and fees

By Bizclik Editor


A federal ruling has been made final today stating that U.S. airline passengers can now collect $1,300 if they are forced to give up their seat on an overbooked flight, making for a 63 percent increase than the previous rate of $800. Passengers will get the full $1,300 if they arrive at their destination more than two hours later than their previously scheduled flight, but will only receive $650, up from $400, if they arrive at their destination within two hours of their scheduled time.

The ruling also requires that foreign carriers must release passengers from aircraft stuck at airports within four hours or face fines up to $27,500. Luggage fees must also be refunded if bags are lost, according to the U.S. Transportation Department. Carriers must include government taxes and fees from fare advertisements and requires that all potential fees be shown on websites.

See top stories in the WDM Content Network:
• Top Ten Biggest Brands
• Click here to read the latest edition of Business Review USA 

Passengers can cancel reservations within 24 hours of booking without penalty, and price increases after tickets have been purchased will be prohibited. The federal ruling also affects foreign carriers British Airways and Air France-KLM. According to Bloomberg, the new ruling will cost airline carriers $30.7 million over 10 years, with more than two thirds coming from new requirements for free disclosure, advertising and extension of the tarmac-delay provision to foreign carriers.

Airlines frequently oversell seats on a flight, banking on the idea that a number of travelers won’t make it to their flight. But when a flight becomes oversold, attendants will look for volunteers to vacate their seats and will offer incentives and vouchers to those who give up their seat.

Wouldn’t it be easier if airlines just booked only the seats they have available in order to eradicate the stress and ultimately today’s ruling? Considering there are so many changes going on in the airline industry and with airline passenger rights, how about put some regulation on ticket prices?!



Featured Articles

How Elon Musk pulled off a $44bn hostile takeover of Twitter

As the world’s richest man, Elon Musk, takes over tech giant Twitter, we highlight the timeline that led to this titanic takeover

Amazon, Alphabet, Wells Fargo best workplaces, says LinkedIn

The top 50 workplaces to grow careers prioritise flexible work and tuition-support programs, as top-ranking firms Amazon and Alphabet prove, says LinkedIn

Top 10 women in technology in the US

These 10 women in tech are forging a path into bold areas of innovation and technological ambition, according to sister publication Technology Magazine

8 executive moves to crypto – from mainstream to startup

Technology & AI

Digital Twins tech ‘missing link’ in urban decarbonisation

Technology & AI

The Metaverse Foundry from Infosys is a business playground

Technology & AI