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Honoring tickets of insolvent airlines, add'l information

The Department issued a notice on August 8, 2002, providing guidance for airlines and the traveling public regarding the obligation of airlines under section 145 of the Aviation and Transportation Security Act (“Act”) to transport passengers of airlines that have ceased operations due to insolvency or bankruptcy.  (P.L. 107-71, 115 Stat. 645 (November 19, 2001))  That notice, which was issued after Vanguard Airlines’ July 2002 cessation of service, was intended to provide immediate guidance in response to numerous complaints from ticketed passengers and inquiries from airlines.  On November 6, 2002, National Airlines ceased operations.  The purpose of this notice is to remind carriers that the provisions of section 145 also apply to National Airlines’ cessation of service.

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