DOT Fines Four Carriers Over Bumping Rules

Photo: Frank Kovalchek

A special Transportation Department task force carrying out “an unprecedented series of inspections” snagged four U.S. airlines in the act of providing inaccurate information to passengers about how much compensation they could potentially receive for being denied boarding against their will, or “bumped” on oversold flights, and for lost, damaged or delayed baggage.

The four carriers fined were: Alaska Airlines, $40,000; American Airlines, $45,000; Southwest Airlines, $40,000; and United Airlines, $35,000.  The airlines were also ordered to cease and desist from future similar violations.

The DOT said they failed to provide passengers with the required notices or provided notices that were incomplete, outdated or inaccurate.

Under DOT rules, passengers are eligible for compensation when they are involuntarily bumped from an oversold flight. The amount varies based on factors such as the planned arrival time of the substitute transportation arranged (or offered to be arranged). 

Air carriers must immediately provide passengers who are involuntarily bumped from a flight with a written statement explaining the terms, conditions and limitations of denied-boarding compensation and describing the carriers’ boarding priority rules and criteria. 

DOT rules also prohibit U.S. airlines from limiting their liability to less than $3,500 for damages that are “reasonable, actual and verifiable” resulting from the loss, damage or delay in delivering a passenger’s baggage in domestic transportation. Carriers must provide passengers with proper notice of the baggage liability limit on or with their tickets.