Congress Re-enacts Section 145: Consumers Guaranteed Protection Should Bankrupt Airline Cease Service
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 wednesday. 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.
The Intelligence Reform bill passage 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 $25 each way. These protections will now expire on Nov. 19, 2005.
The bill must still be signed by the president, which is expected to happen shortly.
The Intelligence Reform bill passage 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 $25 each way. These protections will now expire on Nov. 19, 2005.
The bill must still be signed by the president, which is expected to happen shortly.
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