[Code of Federal Regulations]
[Title 14, Volume 4]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 14CFR250.5]

[Page 208-209]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)
 
PART 250--OVERSALES--Table of Contents
 
Sec. 250.5  Amount of denied boarding compensation for passengers denied boarding involuntarily.

    (a) Subject to the exceptions provided in Sec. 250.6, a carrier as 
defined in Sec. 250.1, shall pay compensation to passengers denied 
boarding involuntarily from an oversold flight at the rate of 200 
percent of the sum of the values of the passenger's remaining flight 
coupons up to the passenger's next stopover, or if none, to the 
passenger's final destination, with a maximum of $400. However, the 
compensation shall be one-half the amount described above, with a $200 
maximum, if the carrier arranges for comparable air

[[Page 209]]

transporation, or other transportation used by the passenger that, at 
the time either such arrangement is made, is planned to arrive at the 
airport of the passenger's next stopover or if none, at the airport of 
the passenger's destination, not later than 2 hours after the time the 
direct or connecting flight on which confirmed space is held is planned 
to arrive in the case of interstate and overseas air transportation, or 
4 hours after such time in the case of foreign air transportation.
    (b) Carriers may offer free or reduced rate air transportation in 
lieu of the cash due under paragraph (a) of this section, if (1) the 
value of the transportation benefit offered is equal to or greater than 
the cash payment otherwise required, and (2) the carrier informs the 
passenger of the amount of cash compensation that would otherwise be due 
and that the passenger may decline the transportation benefit and 
receive the cash payment.

[ER-1337, 48 FR 29680, June 28, 1983]