To avoid confrontation with paid customers on overbooked flights, Delta will pay customers nearly $10,000 to give up their seats. Delta spokesperson said that supervisors were previously only able to offer up to $1,350, but Delta has notified them that they are now be able to offer up to $9,950 in compensation.
Delta gate agents are also now authorized to offer up to $2,000 from $800. This is good news for customers on overbooked flights. Customers who want more money will take the offer so that those who don’t want to give up their seats can fly in peace.
Recently, United Airlines forced a passenger out of the airplane to make room for its employee in an overbooked flights. The video of a passenger, bloodied and screaming, being dragged off a flight went viral. In that incident United Airlines only offered $800 ($1,000 if including the value of the hotel voucher), but there were no taker. If United Airlines increased the offer, the incident could be avoided altogether. Instead, the incident wiped out $255 million off United’s market cap. It’s a costly learning lesson for the airline industry.