[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: 14CFR250.9]

[Page 209-210]
 
                     TITLE 14--AERONAUTICS AND SPACE
 
   CHAPTER II--OFFICE OF THE SECRETARY, DEPARTMENT OF TRANSPORTATION 
                         (AVIATION PROCEEDINGS)
 
PART 250--OVERSALES--Table of Contents
 
Sec. 250.9  Written explanation of denied boarding compensation and boarding priorities.

    (a) Every carrier shall furnish passengers who are denied boarding 
involuntarily from flights on which they hold confirmed reserved space 
immediately after the denied boarding occurs, a written statement 
explaining the terms, conditions, and limitations of denied boarding 
compensation, and describing the carriers' boarding priority rules and 
criteria. The carrier shall also furnish the statement to any person 
upon request at all airport ticket selling positions which are in the 
charge of a person employed exclusively by the carrier, or by it jointly 
with another person or persons, and at all boarding locations being used 
by the carrier.
    (b) The statement shall read as follows:

                    Compensation For Denied Boarding

    If you have been denied a reserved seat on (name of air carrier), 
you are probably entitled to monetary compensation. This notice explains 
the airline's obligation and the passenger's rights in the case of an 
oversold flight, in accordance with regulations of the U.S. Civil 
Aeronautics Board.

[[Page 210]]

                   Volunteers and Boarding Priorities

    If a flight is oversold (more passengers hold confirmed reservations 
than there are seats available), no one may be denied boarding against 
his or her will until airline personnel first ask for volunteers who 
will give up their reservation willingly, in exchange for a payment of 
the airline's choosing. If there are not enough volunteers, other 
passengers may be denied boarding involuntarily in accordance with the 
following boarding priority of (name of air carrier): (In this space 
carrier inserts its boarding priority rules or a summary thereof, in a 
manner to be understandable to the average passenger.)

               Compensation of Involuntary Denied Boarding

    If you are denied boarding involuntarily, you are entitled to a 
payment of ``denied boarding compensation'' from the airline unless:
    (1) You have not fully complied with the airline's ticketing, check-
in, and reconfirmation requirements, or you are not acceptable for 
transportation under the airline's usual rules and practices, or (2) you 
are denied boarding because the flight is canceled; or (3) you are 
denied boarding because a smaller capacity aircraft was substituted for 
safety or operational reasons; or (4) you are offered accommodations in 
a section of the aircraft other than specified in your ticket, at no 
extra charge, (a passenger seated in a section for which a lower fare is 
charged must be given an appropriate refund); or (5) the airline is able 
to place you on another flight or flights that are planned to reach your 
final destination within one hour of the scheduled arrival of your 
original flight.

                 Amount of Denied Boarding Compensation

    Passengers who are eligible for denied boarding compensation must be 
offered a payment equal to the sum of the face values of their ticket 
coupons, with a $200 maximum. However, if the airline cannot arrange 
``alternate transportation'' (see below) for the passenger, the 
compensation is doubled ($400 maximum). The ``value'' of a ticket coupon 
is the one-way fare for the flight shown on the coupon including any 
surcharge and air transportation tax, minus any applicable discount. All 
flight coupons, including connecting flights, to the passenger's final 
destination or first 4-hour stopover are used to compute the 
compensation.
    ``Alternate transportation'' is air transportation (by an airline 
licensed by the CAB) or other transportation used by the passenger 
which, at the time the arrangement is made, is planned to arrive at the 
passenger's next scheduled stopover (of 4 hours or longer) or final 
destination no later than 2 hours (for flights within U.S. points, 
including territories and possessions) or 4 hours (for international 
flights) after the passenger's originally scheduled arrival time.

                            Method of Payment

    The airline must give each passenger who qualifies for denied 
boarding compensation a payment by cash or check for the amount 
specified above, on the day and place the involuntary denied boarding 
occurs. However, if the airline arranges alternate transportation for 
the passenger's convenience that departs before the payment can be made, 
the payment will be sent to the passenger within 24 hours. The air 
carrier may offer free tickets in place of the cash payment. The 
passenger may, however, insist on the cash payment, or refuse all 
compensation and bring private legal action.

                           Passenger's Options

    Acceptance of the compensation may relieve (name of air carrier) 
from any further liability to the passenger caused by its failure to 
honor the confirmed reservation. However, the passenger may decline the 
payment and seek to recover damages in a court of law or in some other 
manner.


(Approved by the Office of Management and Budget under control number 
3024-0003)

[ER-1306, 47 FR 52985, Nov. 24, 1982, as amended by ER-1337, 48 FR 
29681, June 28, 1983; ER-1392, 49 FR 40401, Oct. 16, 1984; ER-1394, 49 
FR 43625, Oct. 31, 1984]