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Federal Register / Vol. 86, No. 8 / Wednesday, January 13, 2021 / Rules and Regulations
using an aircraft that has a designed passenger capacity of 30 or more passenger seats, operating in interstate air transportation or foreign air transportation with respect to nonstop flight segments originating at a point within the United States. Section 250.7
applies to any air carrier or foreign air carrier as those terms are defined in 49
U.S.C. 40102.
3. Amend 250.2b by adding paragraph d to read as follows:
250.2b Carriers to request volunteers for denied boarding.

d Carriers must proactively offer to pay compensation to a passenger who is voluntarily or involuntarily denied boarding on an oversold flight, rather than waiting until the passenger requests the compensation.
4. Amend 250.5 by revising paragraphs a2 and 3, b2 and 3, and e and adding paragraph g to read as follows:
250.5 Amount of denied boarding compensation for passengers denied boarding involuntarily.

a
2 Compensation shall be at least 200
percent of the fare to the passengers destination or first stopover, or $775, whichever is lower, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passengers first stopover, or if none, the airport of the passengers final destination more than one hour but less than two hours after the planned arrival time of the passengers original flight; and 3 Compensation shall be at least 400
percent of the fare to the passengers destination or first stopover, or $1,550, whichever is lower, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passengers first stopover, or if none, the airport of the passengers final destination less than two hours after the planned arrival time of the passengers original flight.
b
2 Compensation shall be at least 200
percent of the fare to the passengers destination or first stopover, or $775, whichever is lower, if the carrier offers alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passengers first stopover, or if not, the airport of the passengers final destination more than one hour but less than four hours after the planned arrival time of the passengers original flight; and
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3 Compensation shall be at least 400
percent of the fare to the passengers destination or first stopover, or $1,350, whichever is lower, if the carrier does not offer alternate transportation that, at the time the arrangement is made, is planned to arrive at the airport of the passengers first stopover, or if not, the airport of the passengers final destination less than four hours after the planned arrival time of the passengers original flight.

e The Department of Transportation will review the denied boarding compensation liability limit amounts prescribed in this part every two years except for the first review, which will take place in 2012, to put the reviews specified in this section on the same cycle as the reviews of domestic baggage liability limits specified in 14 CFR
254.6. The Department will use any increase in the Consumer Price Index for All Urban Consumers CPIU as of July of each review year to calculate the increased denied boarding compensation liability limit amounts.
The Department will use the following formula:
1 Current Denied Boarding Compensation liability limit in paragraph a2 of this section multiplied by a/b rounded to the nearest $25 where a = July CPIU of year of current adjustment and b = the CPIU figure in August 2011 when the inflation adjustment provision was added to this part.
2 The Denied Boarding Compensation liability limit in paragraph a3 of this section shall be twice the revised limit for paragraph a2 of this section.
3 The Denied Boarding Compensation liability limit in paragraph b2 of this section shall be the same as the revised limit for paragraph a2 of this section, and the Denied Boarding Compensation liability limit in paragraph b3 of this section shall be twice the revised limit for paragraph a2 of this section.

g Nothing in this part prohibits carriers from offering denied boarding compensations in an amount more than the amount calculated according to paragraphs a through d of this section, or more than the denied boarding compensation liability limit amounts effective at the time of denied boarding.

5. Add 250.7 to read as follows:

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250.7 Provision to implement the Transparency Improvements and Compensation to Keep Every Ticketholder Safe Act of 2018.

a Boarded passengers. A covered air carrier may not deny a revenue passenger traveling on a confirmed reservation permission to board, or involuntarily remove that passenger from the aircraft, once a revenue passenger has:
1 Checked in for the flight prior to the check-in deadline; and 2 Had their ticket or boarding pass collected or electronically scanned and accepted by the gate agent.
b Limitations. The prohibition pursuant to paragraph a of this section shall not apply when:
1 There is a safety, security, or health risk with respect to that revenue passenger or there is a safety or security issue requiring removal of a revenue passenger; or 2 The revenue passenger is engaging in behavior that is obscene, disruptive, or otherwise unlawful.
c Rule of construction. Nothing in this section may be construed to limit or otherwise affect the responsibility or authority of a pilot in command of an aircraft under 14 CFR 121.533, or limit any penalty under section 46504 of title 49, United States Code.
6. Amend 250.9b in the statement under AMOUNT OF DENIED
BOARDING COMPENSATION by revising the entries for Domestic Transportation and International Transportation to read as follows:
250.9 Written explanation of denied boarding compensation and boarding priorities, and verbal notification of denied boarding compensation.

b

Amount of Denied Boarding Compensation Domestic Transportation Passengers traveling between points within the United States including the territories and possessions who are denied boarding involuntarily from an oversold flight are entitled to: 1 No compensation if the carrier offers alternate transportation that is planned to arrive at the passengers destination or first stopover not later than one hour after the planned arrival time of the passengers original flight; 2 at least 200 percent of the fare to the passengers destination or first stopover, or $775, whichever is lower, if the carrier offers alternate transportation that is planned to arrive at the passengers destination or first stopover more than one hour but less than two hours after the planned
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