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6 months after the bankruptcy of Spanair and Malev, customers have still not been refunded for the unflown tickets, highlighting the lack of proper protection against airline failures, says ECTAA – Group of National Travel Agents’ and Tour Operators’ Associations within the EU.
Two major European airlines have ceased operating beginning of this year leaving many passengers with worthless tickets. IATA accredited travel agents are still waiting to receive a refund for the unflown tickets of their customers. IATA is holding the travel agents’ remitted amounts and are negotiating with the bankruptcy administrators for the two defunct airlines to reach a consensual refund process. Yet, 6 months onwards, there is still no agreement and guarantee that the moneys remitted by travel agents will be allocated by the bankruptcy administrator for the refund of customers.
ECTAA deplores that there is no better protection of passengers against airline failures. Despite two major studies on European airline failures, evaluating the impact on passengers and assessing feasible options to better protect passengers, the European legislators have still not decided to legislate in this area. This is disappointing considering that the last study demonstrated that the most effective solution was to introduce a mandatory system to protect passengers against airline failures.
ECTAA is concerned that in the current weak economic climate, passengers are exposed to high risk of further airline insolvencies. The International Air Transport Association (IATA) forecast another wave of new European airline insolvencies this year with combined losses or airlines predicted to reach $1bn2.
Said President of ECTAA: “If the European legislators will not step up and provide a mandatory system to protect passengers against airline failures, passengers will continue to be unsecured creditors in the airline bankruptcy and have little chance of receiving a refund of their air ticket.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
