[blueash]

Originally Posted by biker1

You are incorrect to say that there is no maximum. Also, please note that I was misquoted in post #129 and tried to correct the misquote in post #130. I will try again to state the facts.

I find the wording in the Contract of Carriage to be misleading and can possibly be interpreted two ways. For a two hour or greater delay, the compensation is 400% of the one-way fare with a maximum of $1350. That could be interpreted as 400% of a maximum fare of $1350 (in which case the maximum compensation would be $5400 or 4 x $1350) or the maximum compensation is $1350 (regardless of how expensive the one-way fare is). I believe the latter applies and the maximum compensation is $1350. Regardless, there is a maximum. This applies to involuntary bumping only.

Go back at reread the United Contract of Carriage.

Here is summary from my travel folks at work, bold type added by me:

If the airline arranges substitute transportation that is scheduled to arrive at your destination between one and two hours after your original arrival time (between one and four hours on international flights), the airline must pay you an amount equal to 200% of your one-way fare to your final destination that day, with a $675 maximum.
If the substitute transportation is scheduled to get you to your destination more than two hours later (four hours internationally), or if the airline does not make any substitute travel arrangements for you, the compensation doubles (400% of your one-way fare, $1350 maximum).

Sorry, but this is why I am correcting you. There is no confusion at all in what the DOT regulations mean. My interpretation is correct. Unless the passenger accepts a lowball offer, the airline is required to pay 400% of the ticket price to an involuntarily bumped passenger who is delayed 2 hours. This 400% rule is capped at 1350 [4 x 337.50]. For tickets priced higher than 337.50 the airline is not required to offer 400% of the ticket price, only REQUIRED to pay the 1350. In other words 1350 is the minimum they must pay, again absent the passenger accepting a lower lowball offer.

See the language you have correctly included which is from the DOT website in your post which I enlarged. "the airline must pay you". It is the critical phrase and sets the lowest amount you should expect to receive. For a >2 hour delay the airline MUST compensate you 400% of your ticket price. If that were the stand alone rule and your ticket cost $500, you would be entitled to a minimum of $2000. Clear so far? To limit the airline's penalty required the DOT capped that required penalty instead at 1350.

That means that the airline is not required to offer more than 1350. It does not mean the airline is not allowed to offer more than 1350. If United wishes to say, well the government will not force us to offer more so we never will, that is a corporate choice. The government sets the minimum the consumer is entitled to receive.


Now I see you have cited a friend who works in the business as your source. I will cite the DOT regulation which is very clear.

Oversales
• Increases the minimum denied boarding compensation limits to $650/$1,300 or 200%/400% of the one-way fare, whichever is smaller.
 
• Implements an automatic inflation adjuster for minimum DBC limits every 2 years.
 
• Clarifies that DBC must be offered to “zero fare ticket” holders (e.g., holders of frequent flyer award tickets) who are involuntarily bumped.
 
• Requires that a carrier verbally offer cash/check DBC if the carrier verbally offers a travel voucher as DBC to passengers who are involuntarily bumped.
 
• Requires that a carrier inform passengers solicited to volunteer for denied boarding about all material restrictions on the use of transportation vouchers offered in lieu of cash.

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Lastly, Delta has recently announced they are authorizing their personnel to offer higher compensation to induce passengers to be bumped,

A customer-service agent will be able to offer $2,000 per change from the previous $800. A higher-ranking worker such as an operations service manager could offer up to $9,950, from the previous cap of $1,350.

If the DOT regulated the maximum that could be offered, this change would be a violation.

and United has changed its policy on when dead head crew members must be at the gate to be accommodated

The airline, owned by United Continental Holdings Inc. said it would make sure crews traveling on their aircraft are booked into seats at least 60 minutes before departure.