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More cash for bumped passengers?

The Obama administration wants to raise the amount airlines have to compensate passengers bumped from full flights to as much as $1,300. They pay up to $800 now.

The Transportation Department unveiled the proposals Thursday. The proposed changes also would give passengers 24 hours to cancel reservations without penalty.


"Airline passengers have rights and should be able to expect fair and reasonable treatment when they fly," U.S. Transportation Secretary Ray LaHood said in a statement. "With this rulemaking, we're proposing to strengthen the consumer protections enacted last month and raise the bar for airlines when it comes to treating passengers fairly."

And the new rule would require airlines to fully and prominently disclose baggage fees, prohibit price increases after a ticket is purchased, and give passengers timely notice of flight status changes.

The proposal would also extend to foreign airlines a three-hour limit on the time airlines can keep passengers waiting on airport tarmacs.

-- Associated Press and staff reports

By Michael Bolden  | June 2, 2010; 11:40 AM ET
Categories:  Transportation Politics  
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