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Comment by strictnein | Hacker News Reader

Also, I think there's actually a government regulation which caps it at $1300 or so.

The cap is the maximum of what passengers are legally entitled to. The airlines can offer more if they want.

I've been wondering: does this mean that a valid response to this situation would be "I will leave the plane if given my legally entitled $1350"?

As in, among other reasons, is United in the wrong here because the maximum they offered for volunteers was $800, not the regulated $1350?

The way I understand it is that they can offer any amount they want to get volunteers. But if they want to involuntarily bump someone, they have to pay at least four times the one-way fare that passenger paid, up to $1,350.

So bumping the person that paid the least for their ticket would mean they have to pay them the least.

See the Involuntary Bumping subsection under Overbooking in [1]. The airline is obligated to give you either:

    `min(2 * your ticket price, $675)`; or 
    `min(4 * your ticket price, $1350)`

depending on how quickly they can reroute you to your destination. You also have legal standing to demand they pay you with a cashier's cheque instead of a voucher.

Judging by personal anecdotes I've read around the web, airlines may be willing to pay more if they are in a bind. But note that this whole voluntary/involuntary bumping procedure happens before you scan your ticket and board the airplane.

[1]: https://www.transportation.gov/airconsumer/fly-rights

How could that possibly be true? The USG isn't going to limit what a company can voluntarily give to a customer.

There's a lot of nonsense regulations that different industries lobby to be put in place. I mistook the fact that there's a cap with what the airline is obligated to pay with what they are allowed to pay.

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