In: Economics
True/False/Uncertain? Explain your answer brief?y.
(a) Airline Companies often sell more seats than are actually available on a fl?ight. In the occasional event that all passengers do show up, this practice of overbooking naturally means that some people with tickets are ?bumped? to a later fl?ight. What criteria might be used to decide which passengers will get on the fl?ight they booked and which do not? Discuss alternatives and evaluate them from an e?ciency point of view.
It is True that Airlines Companies often sell more seats that are actually available on a flight because of avoiding flying flights with empty seats, so that Airlines sell more seats that are actually available but not all airlines are engaged in this practice of overbooking but instead of that some Airlines sells enough tickets to fill every seats, so this practice intention is to removes the chances that a passenger will be bumped.
The Airlines have law according to the federal law for overbooking flight but it is legal for Airlines to do so. Bumped of a passenger from a flight is to denied a seat on a plane but the Airlines must ask passenger on the flight if they are willing to give up their seats voluntarily in exchange the Airlines Compensate them.
The best Alternative to avoid overbooking flight for a passenger is to using the online booking system, so it will automatically manages your allocations and shows customers accuracy information and the availablity of seats in a flight, this will not only gives protection from overbooking flights but also saves time and reduce errors.