The Palm Beach Post

Delta OKs offfffffff­fffers of up to $9,950 for seats

Company’s policy aimed at reducing forced bumping.

- By David Koenig and Damian Troise Associated Press

Delt a i s letting employees offer customers almost $10,000 in compensati­on to give up seats on overbooked flights, hoping to avoid an u p r o a r l i ke t h e o n e t h a t erupted at United after a passenger was dragged offff a jet.

I n a n i n t e r n a l m e m o obtained Friday, Delta Air Lines said gate agents can offfffffff­fffer up to $2,000, up from a previous maximum of $800, and supervisor­s can offfffffff­fffer up to $9,950, up from $1,350.

United is reviewing its own polic ies, including incentives for customers, and will announce any actions by April 30, a spokeswoma­n said. The airline would not disclose its current compensati­on limit.

Other airlines did not immediatel­y comment on whether they would raise their ceiling.

When there aren’t enough seats, airlines usually ask for volunteers by offfffffff­fffering travel vouchers, gift cards or cash.

Last year Delta got more passengers to give up their seats than any other U.S. airline, partly by paying more than most of the others. It had the lowest rate among the largest U.S. airlines of bumping people offff flflights against their will — something that is legal but alienates customers and requires the airline to pay compensati­on of up to $1,350 per person.

Oversellin­g flflights is a fact of life in the airline business. Industry offifficia­ls say that it is necessary because some passengers don’t show up, and that overbookin­g keeps fares down by reducing the num- ber of empty seats.

T h e p r a c t i c e h a s b e e n questioned, however, since a 69-year-old man was violently dragged offff a sold-out United Express flflight over the weekend. It has turned into a public-relations nightmare for the entire industry and led to calls from politician­s and consumer advocates to suspend or ban overbookin­g.

Ben Schlappig, a travel blogger who fifirst wrote about the Delta compensati­on increase, said it shows Delta is trying to reduce forced bumping. He said he couldn’t imagine many situations in which people wouldn’t jump at nearly $10,000.

Delta no doubt hopes that gate agents and their supervisor­s won’t need to make maximum offers, and the fifinancia­l cost to the airline is likely to be limited. If Delta paid $9,950 to every person it bumped involuntar­ily last year the compensati­on would total 12 million. Delta earned nearly $4.4 billion.

Raising the limits “lets them solve some PR problems” and might head offff U.S. Transporta­tion Department regulation­s to curb overbookin­g, said another blogger, Gary Leffff. “They can say, ‘Look, we’re already solving the problem.’”

Government data shows that in 2015 and 2016, Delta paid an average of $1,118 in compensati­on for every passenger that it denied a seat. Southwest Airlines paid $758, United 565, and American Airlines $554.

After the incident in Chicago, critics questioned why United didn’t offfffffff­fffer more when no passengers accepted the airline’s $800 offer for volunteers to give up their seats.

“If you offfffffff­fffer enough money, even the guy going to a funeral will sell his seat,” said Ross Aimer, a retired United pilot.

 ??  ??
 ??  ??

Newspapers in English

Newspapers from United States