"The new rules also double the amount of money passengers are eligible to be compensated for in the event they are involuntarily bumped from an oversold flight. Previously, bumped passengers were entitled to cash compensation equal to the one-way value of their tickets, up to $400, if the airline was able to get them to their destination within a short period of time (within 1 to 2 hours of their originally scheduled arrival time for domestic flights and 1 to 4 hours for international flights). If they were delayed for a lengthy period of time (more than two hours after their originally scheduled arrival time for domestic flights and 4 hours for international flights), they were entitled to double the one-way price of their tickets, up to $800. Under the new rule, bumped passengers subject to short delays will receive compensation equal to double the one-way price of their tickets, up to $650, while those subject to longer delays would receive payments of four times the one-way value of their tickets, up to $1,300. Inflation adjustments will be made to those compensation limits every two years."
I totally agree that the airlines blatant disregard for whether your trip might be ruined by being bumped is ridiculous. Sometimes bumping to the next flight, even if it is only a few hours away, can make you miss a business meeting or important event. I'm hoping that the $1,300 per person fee will get them to control their overbooking policy. They are actually the ones causing the overbooked situation, not us, the passengers.