Originally Posted by
West Coast
ZZY
How does that jive with the Code of Federal regulation below? I may not be tracking what you're trying to express, sorry.
14 CFR 250.5 - Amount of denied boarding compensation for passengers denied boarding involuntarily.
West Coast,
Two points,
First the preamble imposes a limited obligation ('shall pay'), not a restriction from action ('shall not offer').
Second, the airline was probably low balling as the required payment was 400% of the fare and in cash. They almost surely had not complied with (c) 1),2),3) at the time of the incident, which are necessary to support the non-cash alternative which was on offer.
Contrary to your view, 250.5 does not impose a limit on what airlines can offer in compensation, only a limit on what they are obliged to offer. Additionally, airlines normally start at below the value specified in 14 CFR 250.5 and try to give people travel vouchers rather than cash - so don't just pay to the 250.5 schedule.