Iata launches ‘rescue fares’ for stranded pax

IATA has announced a
new arrangement to help
passengers impacted
by airline bankruptcy. A
voluntary agreement on
behalf of its members flying
to, from and within Europe
will cover the repatriation of
passengers unable to return
home due to an airline
ceasing operations as a
result of financial failure.
“Under the agreement,
in the event of an airline
bankruptcy, Iata member
airlines flying to and from
the EU will make their best
efforts to offer repatriation
to passengers stranded
away from home,” an Iata
statement said. These
passengers will be provided
access to discounted
transport to return home,
subject to available capacity.
The ‘rescue fares’ of a
nominal amount will be
available for purchase
up to a maximum of two
weeks after the event to
anyone flying to, from or
within Europe who does not
already possess insurance
covering this eventuality.
The European Commission
has estimated that between
2011 and 2020, only
0,07% of all passengers
could be affected by airline
bankruptcy and, of them,
only 12% would require
assistance in getting home.
“A permanent statutory
fund to aid passengers in
such situations has been
a topic of considerable
discussion. The airline
industry has opposed
such a fund as financially
prudent airlines would be
subsidising riskier airlines.
More importantly, estimates
of the bureaucracy needed
to run the fund suggest
that up to 85% of the
money would be eaten up in
administration,” Iata said.
“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
co-ordinated and customerfocused
approach,” said
Tony Tyler, Iata’s director
general and ceo