I just read the following article on CBC:

Couple bumped from Air Canada flight booked 2 months in advance

It got me thinking about how airlines can avoid overbooking while still

As this YouTube videos has shown, airlines overbook flight in order to make sure a plane is full to make the flight worthwhile. The problem is when everyone is able to make the flight and there are not enough seats available.

Here is what I came up with:

1. Charge for seats as per usual to people that book months in advance (this now includes an insurance fee).
2. If a passenger can’t make the flight for no good reason, the passenger can go on standby for the next flight with a refund of the difference between full price and a discounted price.
3. If a passenger can’t make the flight for a good reason (medical), insurance pays for the flight to the airline and the passenger gets compensated by insurance after an investigation.
4. For flights with missing passengers, stand-by passengers can a book a seat at a discounted price.

This way, an airlines doesn’t have to overbook, but rather is concerned with filling the flight. Legislation should then be passed to make it illegal for airlines to double book seats.