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I spoke with a guy who works for an Australian domestic carrier, and he says that they routinely overbook flights by about 15% to cover the people who don't show. It's a double benefit because they get to keep the air fare of the flaker and sell the same seat to someone else.
This is intended to get rid of the need for the standby system, they're trying to get flights as close to 100% capacity as possible.
Too bad if EVERYONE (or enough people past the 15% overbook) arrive for the flight...
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