NEW PROPOSAL FROM THE TSC ON OVERBOOKING REGULATION

The head of the TSC Anton Koren proposed to introduce a new mechanism for regulating overbooking, which will allow everyone to fly on the selected flight.

In the conditions of a shortage of aircraft fleet, regulating overbooking will allow airlines not to carry empty seats, which is inevitable when overbooking is prohibited.

The essence of the TSC proposal is to use the passenger self-determination method in tariff formation, which is a common practice in civil aviation.

There are categories of passengers that are supposed to be protected from overbooking within the framework of the regulatory standards being developed, including passengers with children, passengers with disabilities, military personnel, pensioners and others, while there are categories that are not protected from overbooking.

For all such categories of passengers not protected from overbooking, it is proposed to introduce a mandatory fee to the offer when purchasing a ticket: a reservation from overbooking. By choosing it for a small additional fee, a passenger who is critical to fly on this particular flight acquires guaranteed protection that in case of overbooking, the seat will remain assigned to him. This reservation can be optionally offered for purchase to every passenger who does not fall into the protected categories.

At the same time, there are categories of passengers for whom it is not critical to fly on this particular flight, they can assume the risk of overbooking and transfer to another flight by purchasing a ticket at a lower price, without paying for the reservation from overbooking.

A reasonable statutory amount of compensation should be in effect for those who did not get on the flight due to overbooking. The amount of compensation should not significantly exceed the passenger's costs from not flying on a specific flight.

With such a system of mandatory inclusion in tariffs of the opportunity to purchase a reservation from overbooking, everyone who is critical to fly on a certain flight will fly.

At the same time, airlines will remove legal risks, because everyone who needs to fly will fly, and those who do not get on the flight legally - did not pay for the reservation when purchasing the transportation service, that is, they themselves determined the possibility of accepting the risk.

The system is self-regulating, it also allows airlines to provide 3 commercial effects:
1. Get additional income from sales of reservations from overbooking.
2. Sell more tickets than seats on the flight, ensuring effective commercial use of capacity, high occupancy.
3. Reduce the costs of legal work.

Details in the video of this news - https://t.me/ConsortiumTSC/173

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