14 CFR 250.5 - Amount of denied boarding compensation for passengers denied boarding involuntarily.

§ 250.5 Amount of denied boarding compensation for passengers denied boarding involuntarily.
(a) Subject to the exceptions provided in § 250.6, a carrier to whom this part applies as described in § 250.2 shall pay compensation in interstate air transportation to passengers who are denied boarding involuntarily from an oversold flight as follows:
(1) No compensation is required if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination not later than one hour after the planned arrival time of the passenger's original flight;
(2) Compensation shall be 200% of the fare to the passenger's destination or first stopover, with a maximum of $650, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination more than one hour but less than two hours after the planned arrival time of the passenger's original flight; and
(3) Compensation shall be 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,300, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if none, the airport of the passenger's final destination less than two hours after the planned arrival time of the passenger's original flight.
(b) Subject to the exceptions provided in § 250.6, a carrier to whom this part applies as described in § 250.2 shall pay compensation to passengers in foreign air transportation who are denied boarding involuntarily at a U.S. airport from an oversold flight as follows:
(1) No compensation is required if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination not later than one hour after the planned arrival time of the passenger's original flight;
(2) Compensation shall be 200% of the fare to the passenger's destination or first stopover, with a maximum of $650, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination more than one hour but less than four hours after the planned arrival time of the passenger's original flight; and
(3) Compensation shall be 400% of the fare to the passenger's destination or first stopover, with a maximum of $1,300, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passenger's first stopover, or if not, the airport of the passenger's final destination less than four hours after the planned arrival time of the passenger's original flight.
(c) Carriers may offer free or reduced rate air transportation in lieu of the cash or check due under paragraphs (a) and (b) of this section, if—
(1) The value of the transportation benefit offered, excluding any fees or other mandatory charges applicable for using the free or reduced rate air transportation, is equal to or greater than the cash/check payment otherwise required;
(2) The carrier fully informs the passenger of the amount of cash/check compensation that would otherwise be due and that the passenger may decline the transportation benefit and receive the cash/check payment; and
(3) The carrier fully discloses all material restrictions, including but not limited to, administrative fees, advance purchase or capacity restrictions, and blackout dates applicable to the offer, on the use of such free or reduced rate transportation before the passenger decides to give up the cash/check payment in exchange for such transportation.
(d) The requirements of this section apply to passengers with “zero fare tickets.” The fare paid by these passengers for purposes of calculating denied boarding compensation shall be the lowest cash, check, or credit card payment charged for a ticket in the same class of service on that flight.
(e) The Department of Transportation will review the maximum denied boarding compensation amounts prescribed in this part every two years except for the first review, which will take place in 2012 in order to put the reviews specified in this section on the same cycle as the reviews of domestic baggage liability limits specified in 14 CFR 254.6. The Department will use any increase in the Consumer Price Index for All Urban Consumers (CPI-U) as of July of each review year to calculate the increased maximum compensation amounts. The Department will use the following formula:
(1) Current Denied Boarding Compensation limit in section 250.5(a)(2) multiplied by (a/b) rounded to the nearest $25 where:
a = July CPI-U of year of current adjustment
b = the CPI-U figure in August, 2011 when the inflation adjustment provision was added to Part 250.
(2) The Denied Boarding Compensation limit in § 250.5(a)(3) shall be twice the revised limit for § 250.5(a)(2).
(f) In addition to the denied boarding compensation specified in this part, a carrier shall refund all unused ancillary fees for optional services paid by a passenger who is voluntarily or involuntarily denied boarding. The carrier is not required to refund the ancillary fees for services that are provided with respect to the passenger's alternate transportation.
[Docket No. DOT-OST-2010-0140, 76 FR 23162, Apr. 25, 2011]

Title 14 published on 2014-01-01

no entries appear in the Federal Register after this date.

This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.

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United States Code
U.S. Code: Title 49 - TRANSPORTATION

§ 329 - Transportation information

§ 41102 - General, temporary, and charter air transportation certificates of air carriers

§ 41301 - Requirement for a permit

§ 41302 - Permits of foreign air carriers

§ 41303 - Transfers of permits

§ 41304 - Effective periods and amendments, modifications, suspensions, and revocations of permits

§ 41305 - Applications for permits

§ 41306 - Simplified procedure to apply for, amend, modify, and suspend permits

§ 41307 - Presidential review of actions about foreign air transportation

§ 41308 - Exemption from the antitrust laws

§ 41309 - Cooperative agreements and requests

§ 41310 - Discriminatory practices

§ 41311 - Gambling restrictions

§ 41312 - Ending or suspending foreign air transportation

§ 41313 - Plans to address needs of families of passengers involved in foreign air carrier accidents

§ 41701 - Classification of air carriers

§ 41702 - Interstate air transportation

§ 41703 - Navigation of foreign civil aircraft

§ 41704 - Transporting property not to be transported in aircraft cabins

§ 41705 - Discrimination against handicapped individuals

§ 41706 - Prohibitions against smoking on passenger flights

§ 41707 - Incorporating contract terms into written instrument

§ 41708 - Reports

§ 41709 - Records of air carriers

§ 41710 - Time requirements

§ 41711 - Air carrier management inquiry and cooperation with other authorities

§ 41712 - Unfair and deceptive practices and unfair methods of competition

§ 41713 - Preemption of authority over prices, routes, and service

§ 41714 - Availability of slots

§ 41715 - Phase-out of slot rules at certain airports

§ 41716 - Interim slot rules at New York airports

§ 41717 - Interim application of slot rules at Chicago O’Hare International Airport

§ 41718 - Special rules for Ronald Reagan Washington National Airport

§ 41719 - Air service termination notice

§ 41720 - Joint venture agreements

§ 41721 - Reports by carriers on incidents involving animals during air transport

§ 41722 - Delay reduction actions

§ 41723 - Notice concerning aircraft assembly