Mexico City, Mexico – The Chamber of Deputies passed a bill last Sunday that would require airlines to refund customers when flights are cancelled or passengers are dropped due to overbooking.

The text of the bill, which passed with more than 400 "yes" votes, says that it seeks to boost competitiveness in the industry by encouraging airlines to change their business models and improve service quality.

Institutional Revolutionary Party (PRI) Deputy Marco Antonio Calzada Arroyo, one of the bill’s sponsors, said that airlines need to heed customer complaints about overbooking, which he described as an all-too-common practice that has so far been tolerated by Mexican authorities.

Currently, customers who are forced to give up their seats are entitled to a refund of only 25 percent the ticket price. Airlines must also provide affected passengers with a spot on the first available flight, and cover costs associated with overnight delays, including phone calls, food, lodging, and transportation to and from the airport.

The proposed law, however, requires airlines to refund 100 percent of the ticket price when passengers are refused a seat on the plane or flights are cancelled.

Citizens Movement Deputy Francisco Alfonso Durazo Montaño said that most Mexican airlines allow employees to overbook flights as a cost-cutting measure.