Paul Stewart wrote:
*Some* airlines pay penalties - not all.
When you have a confirmed reservation, airlines in the US and EU are
required to pay "delayed boarding compensation" when you are
involuntarily bumped, unless the reason is something completely outside
their control (such as the weather or when planes are ordered grounded
as happened after 9/11), or they are flying smaller jets (special
exceptions because of weight-and-balance safety rules). This is in
addition to allowing you to use your ticket on the next available
flight. If you elect to make alternate travel arrangements US airlines
also have to refund your ticket, even when it's a "non-refundable" ticket.
http://law.justia.com/us/cfr/title14/14-4.0.1.1.28.0.8.10.html
http://www.itourist.com/members/tips/view.php?id=45
http://www.discountairfares.com/deniedbo.htm