Honoring tickets of insolvent airlines

The purpose of this notice is to clarify the obligation of airlines under section 145 of the Aviation and Transportation Security Act (“Act”) to provide transportation to passengers of airlines that have ceased operations due to insolvency or bankruptcy.  (P.L. 107-71, 115 Stat. 645 (November 19, 2001).)  This notice is needed because of numerous consumer complaints received by the Department regarding the treatment of passengers holding Vanguard Airline tickets by other airlines in the wake of Vanguard’s July 30, 2002, cessation of operations.