American Airlines Changes Compensation Policy for Bumped Passengers

Frequent Business Traveler 11/14/2019

AAA World Article

American Airlines is changing how it compensates passengers who volunteer to take another flight when their flight is oversold.

The new system, internally called “Pay What You Bid,” builds on recent functionality in the AA app that allows travelers to volunteer to be bumped while specifying how much compensation they would want. The compensation comes in the form of a voucher for use on a future flight.

Previously, the airline would pay all volunteers who were rebooked on other flights the same amount, which was the highest amount bid. Going forward, the airline will pay each passenger the amount he bids, which means that if there is more than one volunteer on a flight, each could be receiving a different amount of compensation.

As a result of the change, the airline has asked agents to have private conversations with each passenger and to make announcements for volunteers without disclosing the amount being offered.

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