SFGate: Scanty protection for stranded fliers renewed

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Sunday, January 15, 2006 (SF Chronicle)
Scanty protection for stranded fliers renewed
Ed Perkins


   Congress has extended through next November the law requiring surviving
airlines to carry travelers with tickets from any line that fails. This
protection leaves much to be desired, but it's better than the chaos that
might otherwise result. And though the outlook for the airline industry as
a whole is looking up, U.S. travelers still face the possibility that at
least one big line might fail.
   The basics of the legal requirement remains as last year:
   -- A surviving U.S.-based scheduled airline must honor a failed line's
ticket for no more than an additional $50 each way, plus international
departure fees, if any.
   -- Surviving airlines may offer only standby travel and are not required
to provide firm reservations.
   -- Travelers on a failed line have seven days to get on a standby list if
their airline fails within three days of their scheduled trips; they have
60 days if their scheduled trip is more than three days after their
initial airline's failure.
   -- The requirement applies to frequent-flier tickets as well as paid
tickets, but not necessarily in the same class of service.
   -- Although the law requires surviving airlines to carry failed-line
travelers only on the same itinerary, surviving airlines can't refuse to
accept a ticket for a nonstop flight if the only option is a connection.
And a traveler may use reasonable alternate airports (Oakland or San Jose
for San Francisco; La Guardia for JFK).
   The law has not yet been tested in a real failure, and its consumer
protection element is pretty weak. The main focus is on preserving
travelers' ticket investments rather than preserving their trips. With
load factors on many lines in the range of 80 percent, standby travel will
be iffy and could delay your travel by several days. Many stranded
travelers will have no realistic alternative but to buy replacement
tickets.
   The law specifies the $50 standby option as a minimum but doesn't preclu=
de
surviving lines from offering other options as well. Some of the big
airlines might offer alternatives that would generate more than $50 per
ticket in revenue but still help stranded travelers. Possibilities include
waiving the advance-purchase and other restrictions on the lowest-fare
tickets for stranded travelers, or offering a "trade-in" allowance on a
failed line's ticket toward a new ticket with a firm reservation.
   Despite the somewhat improved outlook for airline finances, airline
failure is still a distinct possibility. Independence Air folded in early
January after failing to obtain additional financing. And despite
continued concessions from employees and lessors, big lines are still very
shaky. Currently, the bearish financial sources are zeroing in on Delta
and Northwest, although other big lines are not exempt. Among the smaller
lines, ATA continues to look shaky.
   Failure, however, is the gloomiest scenario. More likely are buyouts,
mergers and other "solutions" that could postpone failure for months or
even years. And those arrangements are more likely to result in downsizing
than in shutdowns.
   Regardless of the law's extension -- and despite the odds against it --
the complete failure of a big airline would be immensely disruptive. If
you're caught, all you can do is follow the crowd and get on a standby
list as soon as you can, or buy a new ticket if your trip is urgent.

   E-mail syndicated writer Ed Perkins at eperkins@xxxxxxxxx --------------=
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Copyright 2006 SF Chronicle

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