DOT: Airlines should pay bumped passengers more

WASHINGTON (AP) — Airline passengers would receive as much as $1,300 for being bumped from a flight and would have 24 hours to cancel reservations without penalty under a series of consumer protections proposed today by the Obama administration.

Currently, airlines must pay up to $800.

The new rule would also require airlines to fully and prominently disclose baggage fees as well as refunds and expense reimbursement when bags are not delivered on time, provide special notice any time baggage fees are increased, and notify passengers buying tickets whether they must pay to check up to two bags.

Price increases after a ticket is purchased also would be prohibited under the proposal. Airlines also would have to give passengers timely notice of flight-status changes.