Abstract: The impact of flight delays and denied boarding due to overbooking has disrupted the normal operations at airports. They jeopardize the aviation safety and have become a social problem. There should be an innovative management approach to resolve this problem. This study aims to undertake research in the applicable legislation to tackle the liability and compensation for damages due to flight delays and denied boarding as a result of overbooking, to examine the current flight delay situation in China and recommend strategy to deal with flight disruption, to strengthen the role and responsibility of local government, and to ensure accountability of airport management body. China has already established legislation for liability and compensation for damages due to flight delays and overbooking. It is necessary to stand for prohibition of overbooking according to circumstances, to establish a mechanism for claims and compensation for damages in accordance with the legislation. It is crucial to properly enforce and implement the law, to strengthen education and communication about the legislation, to resolutely prevent passengers from taking drastic action due to flight delays, to earnestly safeguard the normal airport operations and to ensure aviation safety and normal operations of air transport in accordance with the legislation.