Fliers get protection if airline goes bankrupt

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Fliers get protection if airline goes bankrupt
By Chris Woodyard, USA TODAY

Travelers worried about flying on airlines that could go bankrupt can=20
breathe a little easier.Congress just extended a provision that requires=20
airlines to accept passengers from a bankrupt rival when they share the=20
same route. Airlines are prohibited from charging more than $25 to provide=
=20
transportation, no matter what the original ticket cost. The=20
consumer-protection measure was included in the $397.4 billion spending=20
package passed last week. Without action by Congress, it would have expired=
=20
by May. The law, as interpreted by the Department of Transportation,=20
applies to passengers holding confirmed seats on a bankrupt or insolvent=20
airline regardless of whether they have paper or electronic tickets. They=20
are entitled to be flown on a competing airline as long as there's an empty=
=20
seat on the same dates of travel. Displaced fliers have 60 days after their=
=20
airline stops flying to exchange their ticket at another airline.

The credit card industry favored extension. The rule gives passengers an=20
incentive to rebook on other airlines rather than use the option they've=20
always had, which is to call their credit card company to cancel their=20
ticket purchases and receive a refund. Some airlines, including Delta,=20
American and Northwest, opposed the extension. "The credit card companies=20
win, the consumer wins, and the airlines lose," says Terry Trippler, air=20
traveler advocate for CheapSeats .com. Congress' decision to extend the=20
provision comes at a time of unprecedented turmoil in the airline industry.=
=20
United and US Airways are in bankruptcy reorganization. Most others are=20
losing money. The consumer-protection idea came after the Sept. 11 attacks.=
=20
While granting airlines bailout funds, Congress was concerned about=
 failures.

The provision got a critical test last year after Vanguard Airlines ceased=
=20
operations. The DOT says there was "considerable confusion" among airlines=
=20
about the law when they were flooded with displaced Vanguard passengers.=20
Some rivals flew passengers for free. Other airlines charged $100=20
ticket-change fees. Delta and American have gone to the U.S. Court of=20
Appeals to challenge the Transportation Department's authority to limit=20
fees to $25. When National Airlines failed last year, hundreds of Las Vegas=
=20
passengers "were suddenly thrust upon Delta, overwhelming ticket counters,=
=20
gate agents and crowding and delaying Delta flights carrying its regular=20
passengers," Delta says in court papers. "In such circumstances, carriers=20
have more than valid reasons for charging passengers at least their=20
standard fee for reticketing services" =97 $100.


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