Airlines ink customer protection agreement
Brussels: The International Air Transport Association (IATA) has
introduced a new arrangement to help passengers impacted by airline
bankruptcy.
A voluntary agreement on behalf of its members flying to, from and
within Europe will cover the repatriation of passengers unable to return
home due to an airline ceasing operations as a result of financial
failure.
"Passengers left stranded in the rare and unfortunate event of an
airline bankruptcy will be offered 'rescue fares' from airlines to
ensure they can get home," said IATA's Director General and CEO, Tony
Tyler at a round-table meeting with journalists in Brussels on Tuesday.
The agreement formalises a long-standing custom that many airlines
have traditionally offered in these rare instances. Under the agreement,
in the event of an airline bankruptcy, IATA member airlines flying to
and from the EU will make their best efforts to offer repatriation to
passengers stranded away from home.
These passengers will be provided access to discounted transport to
return home, subject to available capacity. The 'rescue fares' of a
nominal amount will be available for purchase up to a maximum of two
weeks after the event to anyone flying to and from or within Europe who
does not already possess insurance covering this eventuality.
States responsible for the licensing of the insolvent airline should
also play their role in communicating to stranded passengers the
possibility of this rescue service.
"This agreement on rescue fares shows that the airline industry is
more determined than ever to ensure reliable and consistently excellent
customer service. Airlines have formalised a unique cooperation
agreement that puts passenger needs first," said Tyler.
The European Commission has estimated that between 2011 and 2020,
only 0.07% of all passengers could be affected by airline bankruptcy,
and of them, only 12% would need assistance in getting home.
A permanent statutory fund to aid passengers in such situations has
been a topic of considerable discussion.
The airline industry has opposed such a fund as financially prudent
airlines would be subsidising riskier airlines.
More importantly, estimates of the bureaucracy needed to run the fund
suggest that up to 85% of the money would be eaten up in administration.
"A compulsory levy on airlines to deal with repatriation would not
serve anybody's interest. We commend the European Commission for
resisting this and for encouraging airlines to adopt this coordinated
and customer-focused approach," said Tyler. |