U.S. DOT ISSUES DENIED BOARDING COMPENSATION FINAL RULE; NEW AMOUNTS ARE $675/$1,350
July 19, 2015
To account for inflation, the Department of Transportation recently issued a final rule raising the maximum denied boarding compensation amounts from the current figures of $650/$1300 to $675/$1350 effective August 25, 2015. As a reminder, denied boarding compensation must be provided to passengers who are denied boarding involuntarily on a domestic flight by a carrier who offers alternate transportation and such transportation is planned to arrive at the passenger’s first stopover or final destination more than one hour but less than two hours after the planned arrival time. In such an instance, the denied boarding compensation must be 200% of the fare to the passenger’s destination or first stopover, with a maximum of $675. Denied boarding compensation must also be provided for passengers who are denied boarding and are rerouted to reach their destination two hours or more after their planned arrival time. In this case, the compensation must be 400% of the passenger’s fare, with a maximum of $1350.
The inflation adjustment also applies to passengers involuntarily denied boarding on an international flight outbound from a U.S. airport. In those cases, passengers who are denied boarding and are provided alternate transportation to their destination that is scheduled to arrive more than one hour, but less than four hours, after the planned arrival time must be offered compensation that is 200% of the fare with a maximum of $675. Similarly, passengers who are rerouted to arrive four hours or more after their original arrival time must be compensated 400% of the fare, with a maximum of $1350.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).