First time poster, long time lurker. I have to say this situation and the other related stories from others confirms what we all experience, but frankly do not want to confront: unabated capitalism that enjoys disproportionte regulatory capture means faceless and large organizations are not really accountable to anyone to the detriment of consumers and society/the public. Not that the EU commission has it right, but they sort of have the right idea, without some knuckle rapping airlines will act at the lowest level of decency
evil: Ryanair) and consumers are stuck to adhesion contracts/T&Cs without rational customer service, just look at most of the US aviation industry save SWA/LUV.
Overbooking is a necessary evil and we accept that as consumers and so do regulators for the health of the industry, but just as equally there needs to be a balancing force in the interest of consumers such that bait & switch or misleading practices do not end up 'legalized'. The optionality created by overbooking and IDB/IDG means airlines can essentially fill the cabins with early committed revenue and then ding each of those early purchasers with higher value passengers, with the only real consequence at present being token compensation. Outside of legislative force, there is nothing to tip the balance in favor of consumers over the airline oligopoly (especially in Oceania) and this is bad for consumers who are stuck with high fees, restrictive terms and no guaranteed seats. Overbooking shouldn't be a way for airlines to have a heads-they win and tails-they win and you lose.
For the affected travelers that spurred this post, and future victims, I think fair compensation should be the difference in fare between the class of service bought and one delivered using a fare basis with either similar or more restrictive terms (none of this using a Y fare that is fully flexible relative to a restricted C/J fare) available on the date of purchase. So, if you bought an I fare into C and on that date the comparative economy fare (adv purchase, routing, combinability, etc) was an O fare, then the day of travel you get bumped or downgraded the compensation is I-fare minus value of O-fare on date of purchase. It would be fair to all because if on that date the consumer made a purchase offer and the airline accepted it there were only full fare Y but I fare still available, the premium paid to travel on such date for such seat is lower than if there was an O fare. It also means airlines would have less incentive to bump the people that commit early to travel and pay accordingly in lieu of the lucrative last minute buyer. It is only fair because if I were to tell the airline listen I don't feel like traveling today and prefer tomorrow, they would bend me over the fare rules