26-Nov-2009 9:23 AM

Airline bankruptcies: MEPs call for passenger compensation, joint airline responsibility

Members of the European Parliament adopted (25-Nov-2009) a resolution asking the European Commission to consider proposing new legislation to ensure passengers are not left stranded without accommodation or transport if a carrier goes into bankruptcy. MEPs suggest that establishing a "reserve compensation fund" and introducing "mutual responsibility" for passengers of all airlines flying in the same direction with available seats, could help to get stranded passengers home. MEPs believe there is a loophole that needs to be closed in cases where an airline is declared bankrupt after customers have bought their tickets online. [more]