It doesn’t happen often but when an airline ceases operation it can be very bad news for travelers. With the amount of airline bankruptcies and potential mergers, anything can happen. Good news, travelers have an advocate on their side in ASTA (American Association of Travel Agents). ASTA spearheaded the renewal of Section 145 that enforces the maximum fee an airline can charge in accepting tickets from airlines that have ceased operations. This was put to test when Independence Air shut down and other carriers absorbed their tickets. One airline disregarded the legislation and was contacted by ASTA to honor Independence Air tickets. They soon reversed their policy and accepted the tickets. Please read below for further information.Right of Alternate Carrier
Seek legislation that would permanently extend to consumers the “right of alternate carriage” in the event a bankrupt airline ceases service.Background
The Intelligence Reform bill passed in 2004 re-enacts 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 $50 each way. Legislative Action
Airline Consumer Protection Act of 2005, H.R. 89
On January 4, 2005, Representative Rodney Frelinghuysen (R-NJ) introduced the Airline Consumer Protection Act, H.R. 89, requiring air carriers to honor tickets on suspended service. The legislation was referred to the House Transportation & Infrastructure Subcommittee on Aviation. H.R. 89 provides a fix for Sec. 145 of the 2001 Aviation and Transportation Security Act (PL 107-71) without expiration limitations.