"If airlines fail, tickets will still be good - sort of"

Thursday, December 9, 2004

If airlines fail, tickets will still be good - sort of
By Barbara De Lollis
USA TODAY


As big airlines falter financially, Congress on Wednesday approved
legislation to protect passengers holding tickets on carriers that quit
flying. 

The provision, part of the massive spy-agency overhaul, requires surviving
airlines to accept tickets from failed airlines. It limits their re-booking
fees to $25 on a one-way ticket. 

Both House and Senate voted to reinstates through Nov. 19, 2005, a consumer
protection that had expired last month. President Bush has promised to sign
the bill into law. 

Giving the measure urgency: US Airways is talking of possible liquidation,
and United and ATA are also operating in bankruptcy-court protection.

US Airways officials told the bankruptcy court last week that unless the
court permits it to void its labor contracts, deadlines set by creditors
will force it to start liquidation in January. 

The ticketing provision may not help passengers much, because airlines don't
have to guarantee a seat. Flying standby is difficult when flights are full,
increasingly the case as struggling carriers try to fly planes at or near
capacity. 

"It's some comfort, but not a lot," says David Stempler, president of the
Air Travelers Association. 

Also, most travelers use credit cards to buy tickets. That usually gives the
ticket holder the option of requesting a refund if the airline goes out of
business.

Still, so many consumers are confused by the state of the industry that even
limited ticket protection can boost confidence and demand for tickets, says
Kevin Mitchell of the Business Travel Coalition.

In the fine print:

   . 60-day provision. Ticket holders have 60 days from the day their
carrier stops flying to make arrangements with another airline. If their
carrier folds in January, they can book their flight on a new carrier in
March, Mitchell says.

   . Frequent-flier tickets. The law doesn't specify protection for
frequent-flier award tickets. Inquire, but don't count on it, Stempler says.
"You really depend on the kindness of the airlines if they want to honor
that," he says.

   . No new routes. The law gives ticket holders the chance to use their
ticket on a different carrier, but only on the same route. Fliers booked
Philadelphia to Charlotte, for instance, won't be able to use the ticket for
a flight to Florida.

   . $25 fee. Most airlines will probably charge the full $25 each way when
honoring a ticket on a defunct airline, but don't assume you must pay that.
Southwest, for instance, hasn't charged customers when flying passengers of
defunct airlines in the past.

As soon as you know your carrier has stopped flights, make new arrangements
that day, because many people will simply buy new tickets and fill up
already-crowded planes, Stempler says. Fares are so low, many people will
pay twice to lock in their plans. "You need to move as quickly as you can,"
he says.


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