There is a legal precedent that allows Airlines to overbook. The case was Nader v Allegheny Airlines in 1976. This case was brought by Ralph Nader who is a major consumer advocate and ran for US President in 2000. Please see details below from the US Bar Association website:
Overbooking and Denied BoardingIronically, the fact that it is perfectly legal for airlines to sell more tickets than seats on a flight (overbooking) is the result in large part to the actions of consumer advocate Ralph Nader. Nader was overbooked on his way to give a speech in 1972 and took the case to the U.S. Supreme Court. He lost in Nader v. Allegheny Airlines, 426 U.S. 290 (1976), and helped the carriers establish a precedent allowing them to overbook so long as they give passengers sufficient notice. Thus the signs at counters and on the back of paper tickets (for those of us who still remember them).
Passengers who are involuntarily denied boarding are entitled to payment in cash/check, but many carriers first offer payment in tickets/vouchers. Sometimes they will offer more vouchers than the minimum cash payment. If you fly that carrier frequently, it might work out better for you to take vouchers. But make sure to read the fine print first before accepting them. The DOT recognized this and now requires carriers to notify passengers of the terms and conditions of travel.
There is a legal precedent that allows Airlines to overbook. The case was Nader v Allegheny Airlines in 1976. This case was brought by Ralph Nader who is a major consumer advocate and ran for US President in 2000. Please see details below from the US Bar Association website:
Overbooking and Denied BoardingIronically, the fact that it is perfectly legal for airlines to sell more tickets than seats on a flight (overbooking) is the result in large part to the actions of consumer advocate Ralph Nader. Nader was overbooked on his way to give a speech in 1972 and took the case to the U.S. Supreme Court. He lost in Nader v. Allegheny Airlines, 426 U.S. 290 (1976), and helped the carriers establish a precedent allowing them to overbook so long as they give passengers sufficient notice. Thus the signs at counters and on the back of paper tickets (for those of us who still remember them).
Passengers who are involuntarily denied boarding are entitled to payment in cash/check, but many carriers first offer payment in tickets/vouchers. Sometimes they will offer more vouchers than the minimum cash payment. If you fly that carrier frequently, it might work out better for you to take vouchers. But make sure to read the fine print first before accepting them. The DOT recognized this and now requires carriers to notify passengers of the terms and conditions of travel.