Money Why airlines overbook flights and what bumped passengers can do about it

16:50  12 april  2017
16:50  12 april  2017 Source:   cbc.ca

Fake bomb stalls Chicago-bound flight at Pearson for 5 hours

  Fake bomb stalls Chicago-bound flight at Pearson for 5 hours Fake bomb stalls Chicago-bound flight at Pearson for 5 hours U.S customs officials at Pearson International Airport found a mock explosive inside a suitcase Thursday morning, prompting officials to hold a planeload of Chicago-bound passengers for five hours while they investigated.The fake improvised explosive device (IED), or makeshift bomb, was discovered during a preclearance inspection of a traveller’s suitcase, U.S. Customs and Border Protection (CBP) told Torstar News Service in a statement Thursday.

Likewise, as many travelers know all too well, airlines oversell flights all the time, to compensate for no-show passengers . But what comes next depends whether (Getty Images). Why do airlines overbook , anyway? We mentioned above that airlines overbook to compensate for "no-shows."

Latest Business Headlines. Why airlines overbook flights and what bumped passengers can do about it April 12, 5:00 AM ET. Tax policy on legal pot sales must squeeze out criminal competition: Don Pittis April 12, 5:00 AM ET.

The video of a man being dragged off an overbooked United Airlines flight set to depart Chicago to Louisville, Ky., has sparked outrage against the airline over how the incident was handled, and for what many feel was an insufficient display of remorse.

Quotes in the article

United Continental Holdings Inc

UAL

'How do they get away with it?' Couple bumped from Air Canada flight booked 2 months in advance

  'How do they get away with it?' Couple bumped from Air Canada flight booked 2 months in advance 'How do they get away with it?' Couple bumped from Air Canada flight booked 2 months in advance Neil Crone and his partner, Kathryn Kelly, booked their March flight from Toronto to Miami more than two months in advance.So when they checked in and Air Canada informed them they had been bumped from their flight, they were shocked. "I can forgive an airline losing my luggage, or delaying a flight or even a cancellation for safety reasons," says Crone. "But bumping a fully paid customer? Unconscionable."Crone, an actor and writer, and Kelly played by all the rules.

Where can I find data on overbooked flights and bumped passengers ? Why are airlines allowed to strand passengers on the tarmac for hours and hours? How do airlines determine how much they offer passengers to take a later flight when a flight is overbooked ?

OVERBOOKED flights can be one of the most frustrating aspects of air travel for passengers - so why do airlines oversell? According to Hubble academic director Nina Klietsch, some 50,000 people get bumped from flights every year. But the loss to the airline for compensating passengers who

71.31
+0.59
+0.83%
People's United Financial Inc

PBCT

17.90
+0.01
+0.06%
Air Canada

AC

=
13.24
0.00
0.00%
JetBlue Airways Corp

JBLU

21.86
+0.31
+1.44%

By the end of the day, United's CEO Oscar Munoz put out another statement, saying that he deeply apologizes "to the customer forcibly removed and to all the customers aboard. No one should ever be mistreated this way."

Meanwhile, the Department of Transportation's Office of Aviation Enforcement and Proceedings has begun an investigation, while here in Canada the federal government, prompted by the controversy, announced it will introduce legislation about bumping rules, part of a proposed air passenger bill of rights.

The United passenger's rough ejection has clearly raised questions about overbooking and bumping, the rights of passengers and what they can do to avoid being bumped from their seat.

United CEO calls passenger's removal an 'upsetting event'

  United CEO calls passenger's removal an 'upsetting event' <p>Videos of a United Airlines passenger being forcibly dragged from his seat on a Sunday overbooked flight at O'Hare International Airport have been viewed more than 1 million times, and the airline's CEO on Monday called the incident "an upsetting event to all of us here at United."</p>Videos of a United Airlines passenger being forcibly dragged from his seat on a Sunday overbooked flight at O'Hare International Airport have been viewed more than 1 million times, and the airline's CEO on Monday called the incident "an upsetting event to all of us here at United.

Here, we turn to a question from Lamonte Freerks, who asks “I would like to know why airlines see the need to overbook planes, thus at times bumping paid It ’s not an accident that airlines overbook their flights , and it boils down to one simple reason: “Some passengers don’t show up.”

Keep in mind this refers to being involuntarily bumped from a flight , as opposed to voluntarily offering to take another routing. His suggestions for overbooking compensation are spot-on, so I won’t rehash them here, but I thought it might be interesting to talk about why airlines oversell flights in the first

Why airlines overbook

Airlines overbook — meaning they book passengers to more seats on a particular plane than are available — to maximize profit, calculating that a percentage of people will not show up for the flight. A seat that has already been sold, but remains empty, is a missed opportunity for the airline to generate more revenue.

It's a perfectly legal practice and based on a statistical analysis of previous passenger trends and the number of no-shows in the past. However, it's not an exact science, which leads to overbooked flights.

What if airlines stop overbooking?

If airlines aren't able to recoup their lost revenue, passengers should expect airline ticket prices to go up, Charles Leocha, chairman and co-founder of the consumer advocacy group Travelers United, toldTime magazine.

​"The airlines normally do a pretty good job on overbooking," he said. "People know it's coming, and they are willing to allow themselves to be bribed to get off the flight. People who are actually bumped and are really irritated about it are almost nonexistent — it's a tiny percentage. But the people who want lower prices are around 100 per cent."

United Airlines and Pepsi’s PR scandals may not hurt their stocks

  United Airlines and Pepsi’s PR scandals may not hurt their stocks Though both PepsiCo Inc. and United Airlines recently came under fire from consumers, investors seem to have already moved past the public relations nightmares.PEP

Why Are There So Many Overbooked Flights ? Airlines routinely overbook their flights , meaning that they sell more tickets than they have seats on the plane. They do this because some passengers will inevitably not show up for the flight .

Finding information about why airlines overbook is hard. The link above is from some doorknob who claims anyone can “reserve” a number of seats on different flights without paying for them, which triggers the carriers to “FUCK” ( bump ) passengers to completely different, later, (obviously) flights

What happens when an airline is overbooked

When an airline has overbooked a flight, some passengers will need to be bumped, and the airline will ask for volunteers to take another flight. If none are forthcoming, passengers will be involuntarily bumped. At that point, there's really not much a passenger can do.

According to the Canadian Transportation Agency, the Canadian carriers will "usually help passengers that are voluntarily or involuntarily "bumped" to find a seat on the next available flight at no additional cost."

- Ottawa to introduce legislation to address airline bumping

- United Airlines forcibly removes passenger from overbooked flight

The U.S. Dept. of Transportation says it requires airlines to "ask people who aren't in a hurry" to give up their seats voluntarily in exchange for compensation.

Who gets bumped?

Although it's been suggested that passengers who get bumped are randomly chosen, Canadian and U.S. carriers have their own set of guidelines to decide. Some airlines, according to the U.S. Department of Transportation, will bump passengers with the lowest fares first. Others bump the last passengers to check in.

United Changes Crew-Booking Policy After Passenger's Removal

  United Changes Crew-Booking Policy After Passenger's Removal (Bloomberg) -- United Continental Holdings Inc. has changed its policy on employee travel and will now ensure crews riding on its aircraft as passengers are booked at least 60 minutes before departure, according to a statement from the company. The change, issued Friday, came after the backlash created by a video showing a United passenger being pulled from his seat and dragged down the aisle after refusing to leave an April 9 flight to make room for an airline employee.The passenger, David Dao, suffered a concussion, a broken nose and two lost teeth, according to one of his lawyers on Thursday.

It is profitable to overbook passengers like me on a flight to offer them a cheap ticket and fill the plane but bump them to offer some flexibility to customers paying more. Why does an airline include “seamen” in its list of special requests? 30. Can an airline really refuse to depart when overbooked ?

It was unclear why the airline waited until passengers were in their seats before bumping some from the flight to make way for crew members who needed to make it to Louisville to work. Why do airlines overbook flights .

Their decision may also be based on the passengers' fare class (meaning those in business class will likely avoid the bump), itinerary and frequent flyer membership.

How much compensation will be offered?

Passengers on the United flight had reportedly been offered $400 US and then $800 vouchers and a hotel stay for volunteers to give up their seats.© Mike Hillman/CBC Passengers on the United flight had reportedly been offered $400 US and then $800 vouchers and a hotel stay for volunteers to give up their seats.

Although there were no takers, passengers on the controversial United flight had reportedly been offered $400 and then $800 US vouchers and a hotel stay to give up their seats.

In Canada, the amount of compensation depends on the individual carrier.However, in 2013, the transportation agency ruled that Air Canada had to increase its amount of compensation for bumped passengers on domestic flights following a complaint launched by consumer advocate Gabor Lukacs.

Under the new rules, the airline was required to provide compensation in the amounts of $200, $400 or $800 per passenger, depending on whether the delay is less than two hours, between two and six hours, or more than six hours.

In a recent interview, WestJet told CBC News that it doesn't intentionally overbook flights, but that passengers could be bumped if the airline has to swap a larger plane for a smaller one with fewer seats.

P.E.I. family's 10-year-old son bumped from overbooked Air Canada flight

  P.E.I. family's 10-year-old son bumped from overbooked Air Canada flight P.E.I. family's 10-year-old son bumped from overbooked Air Canada flight A Stratford, P.E.I., family is speaking out after their 10-year-old-son was bumped from an Air Canada flight during their March Break vacation to Costa Rica.Shanna and Brett Doyle booked the trip back in August, but when they tried to pick their seats the day before they left for their flight from Charlottetown to Montreal, they couldn't get a seat for Cole.Shanna Doyle went to the Charlottetown Airport for some answers, only to be told the flight was overbooked.

1. Why do airlines overbook ? Overbooking reportedly happens all the time. As empty seats cost airlines money, airlines United Airlines , at the last minute, decided to fly four of its staff members to Louisville. As Flight 3411 was full, it needed to bump off four passengers to make space for the staff.

Why Airlines “ Overbook ” Flights : It ’s Perfectly Legal. The one bit of good news for passengers is that you are entitled to compensation if bumped from a flight due to overbooking .

In those cases, compensation could reach $1,350, depending on when the passenger arrives at the final destination.

In the U.S., if a passenger will arrive between one and two hours later than planned — or between one and four hours for an international flight — the airline must pay the passenger twice the amount of the one-way fare to the destination, up to $675.

If the passenger will be delayed more than two hours — or four hours for international flights — the airline must pay four times the one-way fare, up to $1,350.

How often does overbooking happen?

Luckac said Canadian airlines do not have to keep statistics on how often they overbook or bump passengers. But the transportation agency said it received 55 complaints about overbooking in 2015-16, less than four per cent of all air travel complaints filed.

CNN reported that a study conducted by MileCards.com shows that Delta and United are the airlines most likely to be overbooked, offering compensation to 10 and 7.2 volunteers, respectively, for every 10,000 passengers — compared with just 0.5 for JetBlue. (The overall industry average is 6.6.)

According to official data, more than 40,000 paying customers were bumped off U.S. flights last year against their will, although in the vast majority of cases that happens at the gate, well before the boarding process has begun.

That figure doesn't include those who voluntarily gave up their seat on oversold flights and received compensation.

According to the U.S. government, 434,000 passengers voluntarily gave up seats on the country's largest 12 airlines last year, including nearly 63,000 on United. The champion of overbookers was Delta Air Lines — about 130,000 passengers on Delta gave up their seats last year.

What can passengers do to avoid being bumped?

Passengers arriving late are usually the ones most likely to be bumped. You can minimize the chances of this happening by coming earlier to the airport.

The Canadian Transportation Agency said pre-selecting seats when making a reservation, which may require the payment of a fee, could also help avoid bumping.


Malaysia Airlines First to Track Fleet With Satellites .
Malaysia Airlines, which lost a wide-body jet with 239 people aboard three years ago in one of history’s most enduring aviation mysteries, has become the first airline to sign an agreement for space-based flight tracking of its aircraft. Malaysia Airlines Bhd. reached a deal with Aireon LLC, SITAONAIR and FlightAware LLC to enable it to monitor the flight paths of its aircraft anywhere in the world including over the polar regions and the most remote oceans, according to an emailed press release from Aireon.Aireon is launching a new satellite network with Iridium Communications Inc.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!