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Some Airline Issues

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Nicholas Johnson
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On the assumption they are unwilling to stop bumping passengers, they ought to build the practice into the contract and pricing. One way would be to require that customers making reservations indicate ahead of time how much money it would take for them voluntarily to agree to be bumped.

Another might be to create a new, cheaper, bump-able class of ticket. That would be similar to a life insurance contract: the company bets you're going to live and keep paying premiums; you bet you're going to die young. In the airline business: you bet the plane won't be full and you'll save on the fare; the airline bets it will be full, you'll be bumped, they will owe you nothing, and the average fare per passenger will be higher.

And that's what I meant by beginning, "There are several issues raised by the events of April 9th."

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Nicholas Johnson is best known for his tumultuous seven-year term as a Federal Communications Commission commissioner (1966-1973), while publishing How to Talk Back to Your Television Set, 400 separate FCC opinions, and appearing on a Rolling (more...)
 

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