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Well, there probably is an element of this, but its far from a layup, especially as other cheap flights to los angeles from hawaii airlines are likely to follow. The most probable outcome from this shift in the policy governing voluntary denied boarding is likely to materialize without headline-grabbing news of passengers successfully arbing the airline. Rather than eye-catching payments, airlines will reduce the amount of seats they sell on oversold flights. And as some passengers will cancel at the last minute, some popular routes may even end up with empty seats. Passengers will have a slightly less awful experience, airlines will make a little less money, and Twitter storms will focus on other aspects of the travel experience. Given the deep mess that United Airlines created for itself after a passenger was dragged off a full flight last week, Delta said it could increase the incentives for voluntary denied boarding. Agents will now be allowed to offer up to $2,000 to entice passengers to give up their seats, significantly more than the previous limit of $800. If that doesnt work, the agents supervisors can authorize payments of almost $10,000. Deltas aim is clear: Use the price incentive to deal with oversold flights and, thus, avoid the social-media-fueled anger that would be sure to erupt again should there be another messy involuntary reaccommodation (as United initially called the incident). On first sight, this approach is likely to work in reducing denied boarding situations for Delta, of which there were an estimated 1,200 in 2016. And once one major airline applies such a system, others are likely to follow (particularly major carriers such as American and United). But what if insights from game theory and, particularly, the greater potential for high collective payouts from credible collaborative collusion were to inform passengers reactions?
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