No Passenger Left Behind, IATA-Driven Agreement Protects Flyers Affected by Airline Bankruptcy

A new IATA-driven agreement protects flyers affected by airline bankruptcies, with special “rescue fares” to help get them home.

Flyers will no longer be stranded at European airports due to airline bankruptcies, thanks to a new arrangement driven by the International Air Transport Association (IATA). Dubbed “No Passenger Left Behind,” the new agreement was announced at IATA headquarters in Brussels on Tuesday.

The new plan allows passengers flying to and from the EU to access “rescue fares” from IATA-member airlines in the event that their ticketed carrier ceases operations due to bankruptcy. The new policy covers all travelers, regardless of whether or not they have travel insurance covering carrier bankruptcy. Tickets would be available based on inventory for up to two weeks after bankruptcy has been declared.

The solution serves as a compromise between the EU and common carriers operating in Europe. The European Commission suggested creating a permanent statutory fund that would provide rescue tickets for displaced passengers, but airlines were opposed to this solution and claimed that highly profitable carriers would ultimately be subsidizing riskier low-cost carriers.

“This agreement on rescue fares shows that the airline industry is more determined than ever to ensure reliable and consistently excellent customer service,” said IATA CEO and Director General Tony Tyler. “Airlines have formalized a unique cooperation agreement that puts passenger needs first.”

According to IATA, the European Commission estimates that 12 percent of all passengers will be directly affected by an airline bankruptcy between 2011 and 2020.

[Photo: iStock]