IATA bankruptcies plea

High-profile airline insolvencies in Europe last year featuring Monarch and Air Berlin have prompted IATA to urge countries to review their bankruptcy laws to reduce the danger of large numbers of passengers being stranded.

The body noted there were big differences in the way the two carriers’ problems were handled, with Air Berlin able to keep flying for more than two months thanks to a government bridge loan while it sought buyers.

Monarch’s right to fly, however, was withdrawn immediately, which IATA said left thousands of passengers stranded and staff “abruptly out of work”.

While rejecting the idea of a rescue fund to repatriate customers, the association said there should be a “reasonable timeframe” within which airlines could continue operating, so more passengers could complete their journeys.

Director EU affairs Monique de Smet told Reuters: “It is up to member states to look at ways to better manage a bankruptcy.”

Her remarks followed a call from the European Tour Operators Association (ETOA) for the EU Commission to introduce a mandatory mechanism to protect passengers against airline failure, with the cost borne by airlines and included in ticket prices.

www.iata.org

Index/Home page
 

OUR READERS' FINEST WORDS (All times and dates are GMT)

All comments are filtered to exclude any excesses but the Editor does not have to agree with what is being said. 100 words maximum