Payouts for Bumped Airline Customers Fail to Impress Critics

But there are so many bigger complaints about airline travel today, starting with flight delays that have trapped passengers in plane cabins for hours, that few travel experts seemed awed by the U.S. Department of Transportation's new bump rules.

Addressing airline delays "is more important," said Joe Brancatelli, editor and publisher of Joesentme.com, a business travel Web site. "Instead of going after the tail that wags the dog, (the government is) going after the flea on the dog's tail."

'This Is a Joke'

The new "bumping rule" would allow passengers inconvenienced by airline overbooking to collect up to US$400 if their flights are rescheduled to arrive within two hours of their original schedule, or within four hours for international flights.

If travelers don't make it to their destination in those time frames, airlines would have to pay up to $800. The compensation would be determined by the value of the ticket, raising another complaint by some who think it's not fair that a vacationer with a discount seat would get less than a business traveler paying full fare.

"This is a joke," said Terry Trippler, owner of tripplertravel.com, an online travel agency. "People with the most expensive tickets will benefit from the new bumping rule. Let's be serious, how many of us are running around with a $400 one-way ticket in our pockets?"

1 in 10,000

The compensation formula hasn't been updated in 30 years, when a limit of $200 for domestic flights and $400 for international flights was set.

"It's hard to compensate for a missed family occasion or business opportunity, but this rule will ensure fliers are more fairly reimbursed for their inconvenience," Mary Peters, the Transportation Department secretary, said in a statement.

Also under the change, which goes into effect in May, planes flying with 30 passengers or more will be included. The old standard was applied to planes with 60 or more passengers.

The number of fliers bumped by airlines is actually quite small -- about one per 10,000 passengers last year, though the number increased from 2006.

Seeking a Cure

"We believe this isn't really going to help passengers," said Roger Cohen, president of the Regional Airline Association. "The way to prevent bumping is to change the environment that causes it."

Cohen called the new rule an attempt to mask the department's failure to improve the nation's airports and infrastructures. "(The department) instead should be focusing on trying to bring the airways and the airports into the 21st century and to meet customer demand."

David Castelveter, spokesperson for Air Transport Association of America, a trade group representing commercial airlines, said the new bump rules wouldn't lead to increased passenger satisfaction, but the industry would comply.

Last year brought passenger frustration to a boil with a near-record number of flight delays. The problems were dramatized by numerous high-profile incidents of planes being stuck on runways for hours, trapping passengers in poorly ventilated cabins without food or water.

Domestic airline delays in 2007 were the second worst on record, according to the Transportation Department, with U.S. flights late more than 26 percent of the time, due in part to congested skies, an aging air-traffic-control system and airlines operating under financial pressure.

New York's Attempt

New York state tried to address the issue of uncomfortable delays with a passenger bill of rights. The state law required airlines to give water, food, clean toilets and fresh air to passengers stuck in delayed planes. A federal appeals court struck down the law this March saying the issue fell under federal jurisdiction. Last year, the House of Representatives approved a similar law. But it has yet to be called for a vote in the Senate.

David Gilles, spokesperson for U.S. Congressman Jerry Costello (D-Ill.), the co-sponsor of the bill in the House, said there has been some conversation the Senate may start considering the bill this week.

But others aren't sure it's worth the efffort.

"It's a waste of time," said Brancatelli. "You can't pass a passenger bill of rights that has any real teeth."