| Travelers brace for turbulence on
bankrupt airlines |
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Previously, stranded passengers holding tickets from
an airline carrier under bankruptcy protection flying a particular
route could travel on another U.S. airline flying the same route
on a space-available basis for an added charge of no more than $50.
Review your rights
Pay close attention to an airline's contract of carriage. "The
contract of carriage contains all the terms and conditions between
the passenger and airline," says New York Supreme Court Judge
Thomas Dickerson, author of "Travel Law."
"All the terms and conditions are referred to
in a summary in the ticket. The courts have held that the airlines
full terms and conditions are incorporated in the ticket. Nonetheless,
you are bound by it, even though they are not in front of you. Because
you are bound by it, you ought to get a copy. The contract of carriage
is different with each airline. There's a basic structure with what
each airline is suppose to do, but there's a lot of variation on
other issues," says Dickerson.
The contract is available at the airline ticket counter
and on the airline Web sites.
Getting traveler's insurance
"The majority of the U.S. travel insurance companies will
not cover you for a bankrupt airline," says Evans. "You
can liken it to running into a burning building and trying to buy
fire insurance. It's simply too great of a risk."
Evans says the travel-insurance industry is taking
a closer look at its exposure to airlines under bankruptcy protection.
"The recent bankruptcy activity has caused further constriction,
with an additional four travel-insurance companies removing coverage
for bankrupt service providers due to the pending financial risk."
However, he explains that some insurers, like Travel
Insured International, will provide coverage, but he says this coverage
is available mostly for the major U.S. airline carriers under bankruptcy
protection, such as Delta, Northwest and United, not the smaller
ones.
"Its only stipulation is that you have to buy
the insurance within 10 days of purchasing your ticket or making
the deposit for your trip."
John Ansell, president of United States Travel Association, says
an estimated 30 percent of American consumers buy some form of travel
insurance. "If they purchase travel insurance prior to the
company in question filing for bankruptcy protection than they are
generally covered."
Use, before you lose, your frequent-flier
miles
"Frequent-flier miles are not money in the bank" says
Hasbrouck. He says airline carriers can eliminate and change the
program at any time with or without a bankruptcy. So, determine
your future travel plans and consider flying on partner airlines.
Bankrate editorial assistant Leslie
Hunt contributed to this story.
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