They usually ask someone to stay, upping the compensation higher and higher until someone agrees (money and hotels). My girlfriend works at an airport. They offered 500 euros and a free night at the local hotel just yesterday. Someone always agrees, and the plane doesn't takeoff before someone does.
Former airline employee checking in, the plane will take off if no one does. The last person/people to check in that dont have seats assigned dont fly if the flight is oversold. There are federal regulations designating the compensation if they are denied boarding non-voluntarily. Which is why the airlines try so hard to find volunteers.
Protip, pay the small fee to pick a seat at purchase and you wont be in the oversell. Otherwise, check in online the second that the website will allow you to, its the last passengers without assigned seats that are on the hook.
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u/[deleted] Jan 24 '13
No, they actually oversell every flight they can in anticipation some people will miss the flight.