Brussels, 25/11/2014 (Agence Europe) - Even though it is rare, passengers on flights to or from European Union airports, who find themselves stranded after an airline goes bankrupt, should not have to pay the costs for it, according to the International Air Transport Association (IATA). IATA has therefore made a commitment, on a voluntary basis, to offer passengers left stranded a contribution to the costs of returning to their home countries. This announcement was made to the European press in Brussels on Tuesday on 25 November by Tony Tyler, the director-general of IATA.
Under the terms of this voluntary agreement, IATA member airlines will do their best to provide low-cost transport home (according to available capacity) for passengers who have been left behind. Tyler stated: “I am delighted to say that 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. The agreement formalises a long-standing custom that many airlines have traditionally offered in these rare instances.” According to Tyler, this cooperation agreement demonstrates the determination of the airlines to ensure that consumers receive “excellent customer service”.
IATA explained that rescue fares of a nominal amount would 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 voluntary agreement enables airlines to avoid binding regulation. It is, in fact, the alternative to creating a permanent fund for meeting passenger repatriation costs by way of a compulsory tax paid by the airlines - an option that the airlines strongly opposed. They consider that such an option would penalise the more efficient airlines by subsidising airlines that were underperforming. Around 25% of resources from this kind of fund would go to operating costs and, according to Tony Tyler, “it would be unfair and counter-productive with its bureaucratic red tape. The Commission should encourage this consumer-centred approach”.
Another IATA expert drove the message home and declared that she was delighted that the European Commission had resisted pressure urging it to introduce legislation. Repatriation costs will only be assumed if an airline ceases operations after the passenger has begun his journey to or from an EU airport, explained the expert.
According to Commission estimates, between 2011 and 2020 only 0.07% of all air passengers are expected to fall victim to a company ceasing operation, and only 12% of them will find themselves in a situation demanding assistance to return home. (AN)