Legislation regarding bankrupt airline tickets expired

[greatam]

Some one asked if the legislation was renewed. As of today, NO. Quote from one of my logistics digests.

 

"Bad news on the legislative front. The protection for passengers holding tickets on bankrupt airlines, requiring other airlines to transport them, space available, for no more than $25, has now expired and legislation to extend this provision did not pass.

 

Congress returns in early December and hopefully may extend this provision at that time. If you want to encourage your congressman and senators to act on this, you should refer to the National Intelligence Reform Act, S.2845, which includes extension of section 145 of the 2001 Aviation and Transportation Security Act. Goodness only knows what else has been stuck into the National Intelligence Reform Act, but this provision is definitely a part we'd like to see pass."

[DebMcMahon]

I was counting on this legislation to be extended in case USAirways liquidates before my Feb. 19 flight to San Juan. I'm so worried that we will not be able to make our cruise on the Constellation!! After we make our final payment in December, we won't have any recourse if the airline goes under!! Any suggestions??

[greatam]

First thing-I hope you have purchased insurance and not from the cruise line. Cruise line insurance won't cover independently booked air, to get you a refund on your air ticket. And if you purchased only cruise line insurance and you can't get there via your own booked air, you have no valid reason to cancel your cruise, which would invoke the cruise line protection per the insurance. Hope that wasn't too convoluted. Just a word of advice-buy independent insurance to cover ALL the costs.

 

2. I would call your cruise line and see what the price is for cruise air. May not be as bad as you think. I generally don't recommend cruise air, but in this case, I would at least check as a backup.

 

3. I really don't think US Air will shut down by Feb., but I would definitely have a back up plan. See #2 and start looking at other options to get you to your embarkation point. You are cruising during President's week vacation period and there really is not much left at bargain prices. Could you drive, if you had to?

 

IMHO, I don't think the legislation will pass before a new legislature is sworn in. And then the bill starts all over again, FROM the BEGINNING.

Jim Sensabrenner is holding tough over the NO Driver's license for illegal aliens, which was recommended by the 911 Commission. That provision was in the House version, passed in October, but then the Senate started their usual tinkering, and took the provision out. What good is all this security, both in the air and on the ground, if illegal aliens can get the same ID as you and I? 63 different driver's licenses held by the 9/11 hijackers. http://www.newsmax.com/archives/articles/2004/11/23/195009.shtml

[bUU]

I think, though, that we can rest a little easier about US Airways. The recent agreement with GE will hold them through June 2005, unless they encounter a strike, in which case, the strike may affect many airlines (including American, incidently), since their unions have agreed to go out on strike as well, if their US Airways cohorts go out on strike. So the worst of the risk with respect to US Airways appears to be over, with a small risk remaining, shared by many airlines.

[greatam]

Bicker,

 

Reading further into the GE deal, one realizes it is merely a restructuring of payment. Conserves cash for the short term, but the long term hits even harder. Unless profit increases substantially, I see very little way for US Air to make the higher payments.

 

I also got email from one of our charter cargo carriers, stating that there would be no more fuel surcharge "upcharges", just the standard fuel surcharge mandated by the DOT. The email went on to state that they had recently entered into an agreement to purchase fuel option contracts, so their fuel prices would be more stable. I believe the purchase is part of US Airways fuel contracts, which leaves US Air even more vulnerable. New option contracts are not nearly as valuable to anyone in the biz as the older (2002-early 2003) options.

 

My company has pulled all freight from US Airways as of Jan 1, 2005, even though they were our carrier of choice for the Eastern Seaboard route. I just can't take a chance of having some very expensive refrigerated product stuck in an airport, with no way to get it delivered or even the refrigeration unit refueled. Been through these financial problems with airlines and trucking companies before and it is not pretty. It is inconvenient for air passengers, but it is a NIGHTMARE for cargo. Liens are attached by everyone even remotely involved IMMEDIATELY, and if it happens to be your freight which gets caught in the middle of the "lien battle", you stand to loose A LOT.

[bUU]

No question that US Airways is still going to have a hard time surviving, but this event seems to me to move the critical point further down the path.