August 23 Airlines to start paying bumped passengers (Richmond Times-Dispatch)

Yet the regulations could have unintended consequences, said George Hoffer, a University of Richmond economics professor specializing in transportation.

For example, airlines traditionally have used overbooking to ensure full flights because some passengers cancel. If passengers have to be bumped, an airline will "bribe them" with compensation to do so, Hoffer said. "Most of the time, the overbooking works," he said.

"Now, with these increased penalties, they [airlines] will less likely overbook, and therefore it increases their costs," he said. With the higher penalties, "marginally, everybody will have to pay for this through increased air fares."

The tarmac-delay penalties also might lead to more canceled flights, Hoffer said.

full Richmond Times-Dispatch article.