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Honoring tickets of insolvent airlines: more information

On November 14, 2002, the Department of Transportation issued a notice providing guidance for airlines and the traveling public regarding the obligation of airlines under section 145 of the Aviation and Transportation Security Act, P.L. 107-71, 115 Stat. 645 (November 19, 2001) (“Act”), to transport passengers of airlines that have ceased operations due to insolvency or bankruptcy.  That notice, issued after National Airlines’ November 6, 2002, cessation of operations, followed a similar notice issued August 8, 2002, after Vanguard Airlines’ July 2002 cessation of service.  Both notices were intended to provide immediate guidance in response to numerous complaints from ticketed passengers and inquiries from airlines.  In addition, the November 14 notice also requested comments from airlines and the traveling public about the cost to carriers of transporting passengers of carriers that had ceased operations.  The purpose of this notice is to respond to those comments.

Regulatory Topic: Aviation Consumer Protection
Effective Date: Friday, October 3, 2014
Issued Date: Thursday, January 23, 2003