Delta hikes payouts for disrupted travellers

ATLANTA Delta Air Lines Inc. increased the payouts its airport agents can offer passengers on overbooked flights, moving to prevent a public-relations nightmare similar to the one plaguing rival United Continental Holdings Inc.

Customer service agents will be able to offer passengers as much as US$2,000 when they’re asked to give up a seat on an oversold flight, up from US$800, according to a memo seen by Bloomberg. Managers can offer as much as US$9,950, more than seven times the previous cap of US$1,350, the memo dated April 13 says.

The new policies come following the controversy that enveloped United last week, after law enforcement officers dragged a passenger off a United Express flight from Chicago to Louisville, Kentucky. The passenger, David Dao, was seated on the plane and refused to give up his seat to make room for a crew member who needed to fly. The incident made worldwide news and led to questions about why the airline didn’t offer Dao more money to leave.

Delta spokesman Anthony Black confirmed the authenticity of the memo, but declined to comment. United has said it would announce the results of a policy review regarding overbooked flights by April 30.

The memo also gives customer service agents tips on how to best deal with oversold flights, including looking for passengers with other options for non-stop flights.

Delta is dealing with its own bad publicity. An April 5 storm in Atlanta shut down operations during spring break, with delays made worse by a breakdown in the airline’s crew location and assignment systems, CEO Ed Bastian said in an email to customers. About 4,000 flights were cancelled. In January, customers were marooned at airports when a computer system breakdown grounded flights. In August, Delta cancelled about 2,000 flights over three days after its worldwide computer system failed.