December 14, 2004
It has nothing to do with intelligence or security, but a measure tucked inside the massive overhaul of the nation's intelligence services contains a nice benefit for consumers. A law requiring surviving airlines to honor tickets from failed airlines, which expired last month, was renewed for another year under the terms of the Intelligence Reform Bill.
The law also sets a $50 ceiling on fees airlines charge to rebook round-trip tickets. Some airlines, anticipating the law's expiration, had already announced rebooking fees of $100 - even when the rebooking was because of a price reduction in the fare.
Travel experts say the law's renewal is good news for travelers, and should make them more comfortable booking flights well in advance, especially on carriers like US Airways and Independence Air, which are experiencing financial trouble.
The protection clause was added in the aftermath of 9/11, not to enhance security but to shore up the airline industry, which was devastated by a significant drop in ticket sales following the terrorist attacks. While the law doesn't guarantee passenger a seat on flights that are already sold out, it can keep them from losing money.
"Passengers have 60 days from the cessation of an airline's operations to make alternative arrangements with another airline," said Kevin Mitchell, director of the Business Travel Coalition.
The law requires airlines to honor tickets issued for flights on the same routes as defunct carriers, but not on other routes around an airline's system. Nor does it require carriers to honor tickets purchased with a defunct carrier's frequent-flyer miles.
