Did You Know that Airlines Are Allowed to Overbook Flights?

[Lee]

Recent complaints about the overbooking of passengers seems to be that they are booked for a future flights via text with no input into the process.

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(SPOT.ph) Several airline passengers complained of getting bumped off their flights due to alleged overbooking of flights, with Cebu Pacific and other airlines receiving heat on social media. But did you know that overbooking is allowed and practiced worldwide?

Overbooking is "accepted practice" under the Air Passenger Bill of Rights, and there's no limit to it, executive director of Civil Aeronautics Board (CAB) Carmelo Arcilla told the Senate committee as senators urged the agency to explore sanctions and other possible recourse to address the "wantusawang overbooking" issue that Senator Nancy Binay called a new modus. 

"The purpose of this is to be able to fill the plane... if it is abused, it will cause inconvenience and suffering to the people," he said during the first Senate committee hearing on passenger complaints regarding Cebu Pacific's delayed, cancelled and overbooked flights on Wednesday, June 21.

Why airlines overbook flights

Overbooking is the general term for when airlines sell more seats compared to the seats of the aircraft. It's a common practice worldwide, said Arcilla.

Before 2012, the limit to overbooking was 10% of the seats in the aircraft but was suspended when the APBR was issued. Why, though? The belief was there was an effective counterweight to discourage the practice, he said.

So why do flights overbook in the first place? It's to allow the airline to fill the aircraft. When this happens, more passengers can ride the flight and the cost can be distributed to a wider market base. In effect, it results in possibly lower fares across the network, said Arcilla.

What should happen if an airline overbooks a flight

Under Section 10 of the APBR, in the case of overbooking, air carriers must shoulder the expenses, consequences, and inconvenience caused to affected passengers.

If you've seen the Netflix show Manifest (or at least the pilot episode), you may be familiar with what's supposed to happen in case of overbooked flights. In case you don't know, here's how it should work:

The air carrier must determine the number of passengers in excess of the aircraft's actual seating capacity

It must announce that the flight is overbooked, and that it is looking for volunteers willing to give up their seats in exchange for air carrier compensation.

Interested volunteers should be given amenities and offers to choose from, which may include: priority booking in the next flight with available space; endorsement to another aircraft upon payment of any fare difference; provide accommodation if the passenger opts to; and/or cash incentive.

In case the number of volunteers isn't enough to resolve the overbooking issue, the air carrier should increase the compensation package until it meets the required number of volunteers.

 

Did You Know that Airlines Are Allowed to Overbook Flights? (msn.com)

[Mike J]

One senator thinks Cebu Pacific franchise should be suspended.  Highly unlikely in my opinion, but the message plays to the crowd?

http://www.cnnphilippines.com/transportation/2023/6/21/suspension-of-cebu-pacific-franchise-eyed.html

Metro Manila (CNN Philippines, June 21) – A House lawmaker on Wednesday urged Congress to suspend Cebu Pacific's legislative franchise due to its “lousy and terrible” service.

“Congress should temporarily withdraw such privilege from Cebu Pacific until such time that it can provide satisfactory service to the riding public,” Cagayan de Oro Rep. Rufus Rodriguez said.

Rodriguez added a franchise should not be used and enjoyed at the expense of the public.

His call comes after a number of passengers raised complaints against the low-cost carrier for overbooking, offloading, and booking glitches.

In a Senate hearing on Wednesday, Xander Lao, president and chief commercial officer of Cebu Pacific, apologized to passengers affected by flight delays and cancellations.

His presentation at the hearing showed Cebu Pacific's on-time performance for the month of May went down to 58%.

“We expressed our sincerest apologies to our passengers for the disruptions and assure you that we are committed to resolving these challenges,” he said.

Lao attributed the disruptions to engine and supply chain issues facing the global aviation industry, the effects of which the airline began to feel as early as March.

“The global aviation industry has been impacted by Pratt & Whitney engine issues which powered the Airbus A321neo and A320neo,” Lao explained.

Apart from Pratt & Whitney engine issues, he also said the airline is encountering delays from Airbus aircraft deliveries.

“These delivery delays necessitate changes to our flight schedules, including flight cancellations and equipment changes from larger to smaller aircraft – which may cause some passengers to be disrupted and cause the perception of overbooking,” Lao added.

Rodriguez, meanwhile, said Cebu Pacific is just making up excuses, stressing that the public must not suffer for their “inefficiency.”

“That is just palusot [an excuse]," he said. "The issue is not about the availability of spare parts or maintenance but Cebu Pacific selling plane tickets when they don’t have the necessary aircraft to carry passengers for whatever reason."

Rodriguez added: “The airline says, ‘Every Juan can fly.’ I say with their kind of deteriorated service, every Juan cannot fly."

Cebu Pacific was granted a 40-year franchise to operate in 1991. According to the law, Congress may amend or repeal the franchise when the common good requires.

Rodriguez also urged President Ferdinand Marcos to allow foreign airlines to operate locally, saying it is allowed under the Public Service Act.

“The government should now open the country and invite foreign airlines to serve Filipinos, who should have options other than being forced to take Cebu Pacific with its terrible service,” he said.

[Lee]

5 minutes ago, Mike J said:

Rodriguez also urged President Ferdinand Marcos to allow foreign airlines to operate locally, saying it is allowed under the Public Service Act.

“The government should now open the country and invite foreign airlines to serve Filipinos, who should have options other than being forced to take Cebu Pacific with its terrible service,” he said.

Probably won't happen but could possibly get someone's  attention at CP.

[Joey G]

"Did You Know that Airlines Are Allowed to Overbook Flights?"

Yep... thats been happening for decades in the US (maybe the world??)... but I never buy a ticket unless I can get a seat assignment... and I have never been offloaded my entire life.... guessing somewhere around 300+ flights altogether. I also wouldn't fly Cebu Pacific if it was free LOL.

[BrettGC]

16 minutes ago, Joey G said:

I never buy a ticket unless I can get a seat assignment

Same, I was offloaded once in the US (Delta - BWI to Boston), after that I pre-booked my seat whenever I can. 

As to the APBR it's not mandatory in all countries, it depends on how strong the consumer protection laws are in any given country and what companies think they can get away with.  

If you bought it up on your phone with a CP check-in agent you'd probably be met with a blank stare.  

Edited June 21, 2023 by BrettGC

[GeoffH]

2 hours ago, Joey G said:

I also wouldn't fly Cebu Pacific if it was free LOL.

I definitely prefer PAL to Cebu Pacific (alhough they're not perfect either) but from what I've read you're more likely to get bumped the lower your ticket class and the fewer your add-ons. 

When I fly Cebu Pacific or another low cost carrier (and I do that a bit) I make sure to add on checked luggage, add on (slightly) better seat selection and generally add on some sort of food pre-order. 

I've never been bumped yet (although I have seen people bumped).

Edited June 22, 2023 by GeoffH

[Lee]

The article speaks of booting passengers because a flight was overbooked. I have been booted off of flights because they were UNDER booked.

PAL has (or did have) a direct flight from LAX to Manila that left in the early afternoon. If you could get to LAX by lets say 10 AM, this flight could save you some travel time.

Twice I arrived on time for this flight only to have it cancelled because not enough passenger had bought tickets. You then got to sit in the PAL terminal for 10 hrs or so to catch the next flight to Manila that left around midnight.

[Dave Hounddriver]

56 minutes ago, Lee said:

I have been booted off of flights because they were UNDER booked.

Only once, for me.  Many years ago in Canada.  I was the only passenger for the flight so they cancelled it and told me to come back the next day.  It would have been fine except that I had to be back at work and it was a crucial time.  Oh well.

[GeoffH]

2 hours ago, Lee said:

The article speaks of booting passengers because a flight was overbooked. I have been booted off of flights because they were UNDER booked.

I've had that happen once travelling from Manila to CDO (had to wait until late at night from mid afternoon) and once in Australia travelling from Melbourne to Gold Coast (which was really annoying as the next available flight was next day which wasted 1 day of my 3 day short break).

Very annoying but we're not really being bumped for another passenger to get our seat as everyone on that cancelled flight is being treated that same.

Edited June 22, 2023 by GeoffH

[Possum]

I have flown well over a million miles and never been bumped from an overbooked flight. But I have been offered a voucher or various amounts of cash to give up my seat. I have had everything imaginable happen and usually was somewhat compensated, including hotel room for flights cancelled due to mechanical issues. The Philippines has very weak consumer protections for air travelers and like most things in the Philippines these protections are not enforced often. Most Filipinos are not aware of any consumer protections. Expecting to get screwed over is part of the culture.

In my experience the EU has decent passenger consumer protections when enforced, better than the US