Kalish v. Trans World Airlines, Inc.

I

Central to the facts of this case, is what is known, in airline industry parlance, as overbooking. At the root of *75this practice are two adverse designs: airline profit and passenger convenience. First, the most economical method to' operate an airline is to assure the maximum number of passengers on a flight. Second, consumer flexibility in reservations produces last-minute cancellations and “no-shows,” resulting in empty seats, lost revenue and a denial of passage to other prospective passengers.1

In response to the problem, the airline industry attempts to statistically determine the number…