Overbooking endangered by the Bush Administration(!)

Airlines have given consumers a record number of delays this year, due in large part to rampant overbooking. In response, the Transportation Department has proposed a new rule increasing the “bump fee” that airlines must pay to passengers who are bumped due to overbooking. The rule would require the airlines to pay $400 (up from $200) to passengers who have to wait less than two hours for a flight, and $800 (up from $400) to passengers who have to wait more than two hours.

Transportation Secretary Peters acknowledged airlines would pass along to passengers some of the costs of the higher fees and penalties. But she said, “Travelers already pay now for the lack of reliability, the lack of knowing they’ll get there on time.” She said her former private sector employer paid the extra cost of having employees travel a day early to be sure to be on time.

For the holidays, President Bush also ordered the Pentagon to open up two “express lanes” off the East Coast that are usually restricted to military flights.

[photo: fito]