Dividends: Getting All On Board

For years, some air travelers have booked seats on several flights to the same destination and then boarded the one of their choice without bothering to cancel their other reservations, leaving the spurned carriers with empty seats. This old problem has become even worse since the air controllers walked off the job because passengers are even more fearful of missing a flight or being delayed. The day before Thanksgiving was a near disaster for many airlines. Some 25% of Delta’s passengers at its hub airport in Atlanta were so-called no-shows.

Air carriers have tried, without success, to curb no-shows before, but they are trying again. Next week the airlines are scheduled to meet in Washington to discuss new methods of fighting the problem. Air Florida is expected to propose offering travelers a 20% discount on nonrefundable tickets bought up to seven days before a flight. New York Air is likely to suggest charging no-shows $20 by deducting that amount from their credit cards. No-shows who pay by cash or check would not receive full refunds.

Such a plan echoes an industry policy in the late 1950s that required a $3 dollar fee from travelers who failed to keep their reservations. The airlines abandoned the program when they found that it cost $5 to collect the fine and also caused ill will among flyers. An effort to counter no-shows through overbooking flights encountered turbulence. Enraged passengers and consumer advocates forced federal regulators to pass a rule that fined carriers for overbooking flights. Any agreement the airlines reach at their scheduled meeting probably could not take effect in time for the Christmas and New Year’s rush, when air traffic (and no-shows) will reach a peak.