There are two different scenarios and they both relate to how much can the airlines compensate for overbooking. In a scenario one would think that the only thing that should be compensated for is the loss of revenue. And yet, as a matter of fact compensation does exist, even though you wouldn’t expect it to.
Compensation occurs when the airline is unable to make the flight on a reasonable number of flights. In most scenarios, a good portion of the compensation will be used to compensate the passengers who were forced to sit in the plane on the chance that someone had a change of heart and would fly.
The next question would be if compensation applies at all? If the airlines intentionally overbooked a flight for a specific reason, will it affect whether they will be held accountable for it?
Compensation is done by the person who is required to sit on a flight. The person with compensation issues and losses should be an agent of the airline. Compensation can occur even if the individual was bumped by the airlines and actually did not get on the flight.
Compensation for overbooking is often not a benefit in itself. It is simply money given to the individual who has a claim to it. This is different from the common perception of compensation being some type of cash payment.
In most cases the person is going to get their money back, and then they will get their ticket back with no change in the ticket and no additional passenger’s baggage. Depending on what the airline has, this could come in the form of air miles or travel vouchers.
There are other things that can be done by the airlines to compensate for overbooking. For example, they may allow those who have to sit on a flight to do so in a place where it is quieter, and even in a different plane altogether. They may also allow the passenger to book a new flight and get a credit for it.
How much can the airlines compensate for overbooking? It depends on how long the process takes. Generally the airline will not be willing to pay any more than it must fly.
For this reason, if the individual is able to prove that the amount of compensation paid was not worth the cost of the ticket, then the compensation can be diminished. Also, if there is an offer made that the individual believes to be in a reasonable range, then the compensation is more likely to be warranted.
Compensation can be a result of some kind of wrongful conduct. For example, if a passenger finds out about overbooking before the flight and decides to take it into their own hands, they could have been putting themselves in a position of increased risk.
Therefore, when making decisions regarding compensation, there are three things to consider: the cost of the ticket, the financial situation of the individual, and the risk involved. If the third thing is taken into consideration, then compensation can be paid.
All the same, it should be noted that compensation does not always have to be related to compensation for overbooking. There are a number of other factors that can impact on whether compensation can be paid.