The proposed legislation of the European Parliament regarding the passenger air transport could provide protection of passengers against the failure of air carriers, obligation of air carriers to provide inclusive air fares and the prohibition of discriminations in access to fares throughout Europe, according to the organization of the European Travel Agents` and Tour Operators` Associations (ECTAA). ECTAA hopes that those features will be supported by the European Parliament in plenary session on 10 July.

When airlines go bankrupt or cease operations, passengers have currently no recourse against the airline to recover the money of their unused ticket or to obtain repatriation if they are stranded abroad. According to a study mandated by the European Commission, 50 airlines went bankrupt in the 5 year period between 2000 and 2005, leaving more than 63.000 passengers stranded abroad without a return ticket.

ECTAA President Jan Van Steen said, “We need a contingency plan for our customers in order to provide adequate protection in case of an airline failure.”

He further stressed that “there is a big consumer protection gap. While IATA agents are required to provide bonding and tour operators need to provide financial guarantees under European legislation to protect customers against their financial failure, there is no such protection afforded by customers against airline failures.”

The European Parliament will vote on 10 July on an amendment to the proposed European legislation that would ensure that air carriers provide financial security to refund passengers’ money and repatriate passengers in case the carrier becomes insolvent or looses its licence. It is crucial that the European Parliament and the governments in the Council of the European Union endorse such protection scheme.

The proposed legislation includes besides provisions that could bring more transparency in the offer of flights, notably with an obligation to provide air fares including taxes, fees and charges, as well as the prohibition to discriminate in access to fares, notably on the base of the place of residence of the traveller or on the place of establishment of the travel agent. ECTAA considers that such transparency is very much needed and that it would bring important benefits to air travellers and to travel agents when serving their customers across Europe.