| Travelers brace for turbulence on
bankrupt airlines |
| By Brigitte Yuille • Bankrate.com |
|
If your summer travel plans involve plane tickets,
you might want to listen up. There may be no one to fly the plane
-- or an airline to fly on -- by the time your departure date rolls
around.
In particular, consumers planning to book flights soon should be
aware of a possible pilot strike. Delta's pilot union has agreed
to strike if their contract is not accepted by the airline -- a
move that could doom America's third-largest carrier-- and perhaps
kill the summer flight plans of Delta travelers.
Delta isn't alone in its financial troubles. With
nearly half of the nation's airlines operating under bankruptcy
protection, there's always the possibility of a carrier shutting
down. Explains travel expert Edward Hasbrouck: A bankruptcy filing
is the final warning from the bankruptcy court before they shut
the airline down. Hasbrouck warns that although operations of these
airlines will look normal, this appearance may "lull consumers
into complacency."
While the travel industry insists that anything is
possible, you needn't go into cardiac arrest over the possibility
of your airline shutting down. Consider these tips if you're planning
a trip on a bankruptcy-prone airline.
Purchase tickets with a credit
card
Purchasing a ticket with a credit card allows you to dispute the
charge and possibly get your money back.
The Fair Credit Billing Act indicates that if an error
appears on your credit card statement you must notify the company
of the mistake within 60 days after you received the bill.
The Federal Trade Commission suggests writing to the
creditor at the address given for "billing inquires."
Include your name, address, account number and the description of
the error. The company must either correct the mistake or acknowledge
that it received the letter within 30 days. Also, the company is
required to resolve the issue within 90 days or explain why it believes
the statement is correct.
If you don't use a credit card, you still have options.
"If a person didn't use a credit card they could
file a claim with the bankruptcy court and ask for a refund,"
says Bill Moseley, spokesman for the Department of Transportation.
He says consumers can file a claim when the bankruptcy
court takes up the case for the airline.
Plan for changes to routes and
schedules
Airlines may rearrange schedules or cancel routes. So, allow for
extra time between scheduled flights and time-critical events, such
as business meetings or cruises. And check your flight; it may be
discontinued.
"On the travel side, history has shown that as
the stricken carriers move through bankruptcy, unprofitable routes
are usually discarded, which causes an interim capacity issue. The
interesting item and lingering question is how many of these routes
will be swallowed up by the budget carriers? Time will indeed tell,"
says Peter Evans, executive vice president of InsureMyTrip.com.
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