singlemalt wrote:
Here's the deal. In Phoenix they asked for volunteers to take a "bump" on
the flight to Austin. Having done so many times on AA I volunteered.

The problem is that people are volunteering. If you're involuntarily
bumped the payoffs are much higher now, and they're in cash, not
vouchers. If so many people would stop volunteering, the overall net
result would be much better, as there would be a big incentive for the
airlines to reduce over-booking, and when it did happen the passengers
would get real compensation.

If the airline arranges substitute transportation that is scheduled to
arrive at your destination between one and two hours after your original
arrival time (between one and four hours on international flights), the
airline must pay you an amount equal to your one-way fare to your final
destination, with a $400 maximum, and they still have to fly you to your
destination or refund your money.

If the substitute transportation is scheduled to get you to your
destination more than two hours later (four hours internationally), or
if the airline does not make any substitute travel arrangements for you,
the compensation doubles (200% of your fare, $800 maximum), and they
still have to fly you to your destination or refund your money.

Apparently these rule are only if you are bumped from a flight that is
actually still operating. If they cancel your flight completely, even
when it's for reasons under their control (not weather), there is no
payoff, and in fact you'll likely lose money. I.e., JetBlue routinely
cancels flights, and simply refunds the cost of any remaining segments.
This strands the passenger, leaving them to purchase full-fare,
no-advance-purchase, tickets on another airline. JetBlue can't rebook a
whole plane load of passengers on a later flight, or a flight the next
day because there is no room on those flights, and they have so few
flights on each route to begin with.