Passengers worried about flying on bankrupt airlines can breathe a sigh of relief, at least through Nov. 19, 2005…
Passengers worried about flying on bankrupt airlines can breathe a sigh of relief, at least through Nov. 19, 2005, thanks to the passage of the Intelligence Reform and Terrorism Prevention Act of 2004 by the U.S. House and Senate yesterday. That legislation contains the provision extending to consumers the right to alternate carriage in the event a bankrupt airline ceases service through Nov. 19, 2005.
In passing, the Intelligence Reform bill reenacts Section 145 of the 2001 Aviation and Transportation Security Act. Section 145 provides that airline passengers holding tickets from a bankrupt carrier for a particular route are entitled to transportation on a space-available basis on any airline serving that route within 60 days after the bankrupt airline suspends operations. Additionally, the maximum fee that an airline can charge for providing standby transportation would not exceed $25 each way. These protections will now expire on Nov. 19, 2005.
Both consumers and travel agents will benefit from passage of this provision, and ASTA is proud to have played a part in seeing this through, said Kathryn W. Sudeikis, CTC, ASTA president and CEO. Airline travel has become a necessity in this country. The airlines need consumers` business to stay in business. Consumer trust is nothing to gamble with so it`s critical that everyone associated with air travel-from travel agents to consumers–have confidence in the system. Agents and travelers alike need assurance that efforts will be made to provide consumers with transportation in the event that any of the financially distressed carriers were to actually cease operation.
ASTA had lobbied hard for retention of this pro-consumer measure, which was in jeopardy in recent weeks when Congress interrupted its work for the Thanksgiving holiday without agreement on the Intelligence bill. The bill must still be signed by the president, which is expected to happen shortly.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
