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Posted at 9:07 a.m., Monday, July 9, 2007

Bumped air passengers could get higher compensation

Associated Press

WASHINGTON — Bumping a passenger from an overbooked flight could cost U.S. airlines more than $1,200 under new rules federal transportation officials are considering.

The Transportation Department on Monday sought public comment on several options for new maximum levels of compensation given to airline passengers forced to take a later flight due to airlines' overbooking.

For passengers forced onto another flight that takes them to their destination less than two hours after their original arrival time, airlines currently must pay the value of a passenger's ticket, plus up to $200.

If the airline does not meet the two-hour limit, passengers can be paid up to $400.

The government is seeking comment on whether to leave the existing limits in place, eliminate them entirely, double them, change the limits to $290 and $580, or $624 and $1,248.

The Air Transport Association, an industry trade group, refused to comment on the options being considered. But David Castelveter, a spokesman for the association, said the industry "more often than not" is able to find volunteers willing to be bumped, rather than forcing passengers off of scheduled flights.