Airlines have agreed a deal to offer discounted “rescue” fares to passengers in Europe left stranded by the bankruptcy of the carrier they had booked flights with.
IATA members flying to, from or within Europe have reached a deal to offer support to repatriate passengers, as part of a plan to stop the EU from creating a statutory fund to pay for the flights of passengers, which all airlines would have to contribute to.
Tony Tyler, IATA’s chief executive, said: “I am delighted to say that passengers left stranded in the rare and unfortunate event of an airline bankruptcy will be offered ‘rescue fares’ from airlines to ensure they can get home.”
Tyler added that the agreement “formalises a long-standing custom” that airlines have offered to stranded passengers when a carrier has gone bust.
IATA said that affected passengers would be offered “discounted transport to return home, subject to available capacity” with rescue fares being charged at a “nominal amount”.
The rescue fares will be available to those travelling to, from and within Europe who do not have insurance covering them against airline bankruptcy. They can be purchased for up to two weeks after the affected carrier has ceased flying.
“This agreement on rescue fares shows that the airline industry is more determined than ever to ensure reliable and consistently excellent customer service. Airlines have formalised a unique co-operation agreement that puts passenger needs first,” said Tyler.
IATA has opposed the creation of a statutory fund to pay for repatriation of affected customers within the EU because “financially prudent airlines would be subsidising riskier airlines”.
“A compulsory levy on airlines to deal with repatriation would not serve anybody’s interest. We commend the European Commission for resisting this and for encouraging airlines to adopt this coordinated and customer-focused approach,” added Tyler.