ELFAA calls for better oversight to prevent airline failures
ELFAA announced (15-Oct-2009) its members question need for a mandatory airline failure fund to provide consumer protection in case of airline bankruptcies. Proposals are currently being discussed within the European Commission and the European Parliament is preparing to adopt a Resolution addressing the issue. ELFAA Secretary General, John Hanlon, called upon regulators to establish a preventive mechanism with closer oversight and financial monitoring of companies showing signs of financial distress, rather than imposing a "compulsory and costly protection on customers". [more]
ELFAA: "It is a matter of preserving consumer’s choice and purchasing power. Low-fare airline customers are overwhelmingly purchasing via the web where they are offered insurances that cover airline failures as an option... A mandatory protection mechanism would impose an unfair burden on ELFAA’s customers and hamper their ability to provide the best service at the lowest price possible," John Hanlon, Secretary General of ELFAA. Source: ELFAA, 15-Oct-2009.