International Overbooked Flight
If you are traveling on an international flight from the United States to a European Union country member, and you were denied boarding due to overbooking, don't worry! Your air passengers rights are protected by law.
Many well-known airlines decline to compensate passengers after denying them boarding due to overbooking on international flights. They justify this by the notion that U.S. Federal Regulations and EU Regulation 261 do not apply in such circumstances.
We have good news for you! The airlines are simply wrong in their analysis.
The U.S. Code of Federal Regulations in part 14 CFR 250.5 explicitly states that “(b) [a] carrier . . . shall pay compensation to passengers in foreign air transportation who are denied boarding involuntarily at a U.S. airport from an oversold flight . . . .” (emphasis added)
Example: You are flying from New York (U.S.) to London (UK). You were denied boarding due to overbooking. You are protected by the federal regulations noted above.
Conclusion: unless exceptions are applied, any overbooking issue on an international flight with any air carrier (U.S. or foreign holding a permit of operations in the U.S.) at a U.S. airport is regulated under the federal law.