In what appears to be an industry first, Delta Air Lines has started an online auction that appears similar to the concept of Priceline.com.
Under this system, passengers bid how much money they want for being bumped from a crowded plane.
Customers can bid on their computers or at an airport kiosk.
"It sounds unique," said Steve Lott, a spokesman for the International Air Transportation Association, a trade group. He told New Jersey Business:
"Airlines overbook because passengers don’t always show up for flights, and the compensation they pay out for overbooking costs them in the millions."
After getting passenger bids, Delta issues "Delta Dollars" transportation vouchers that can be used for future flights, said Anthony Black, a spokesman for Delta.
"On one of the auctions I saw, one bid was as low as US$100, and they went all the way up to $400," he said.
Delta said the online auction saves the airline time and money and is more convenient for passengers who have flexibility in their travel schedules.
Passengers have to be compensated when they are involuntarily bumped by airlines if their departure is delayed by more than one hour, according to the federal Department of Transportation.
By David Wilkening
