Passenger Rights If Default On Loan?

audrey2001

Newbie
Oct 27, 2003
12
0
I know this is an insider industry board, but you all have been very friendly and give good advice! Just read the big article in the biz section of USA Today today 1/26---I'm flying to London March 9, returning March 17th. If US Airways closes up shop either while I'm in London or before we go, what are my rights, if any? Can we get ticket refunds? Will the airline cover the costs of my hotel losses?

Thanks for any help---I've never encountered a potential situation like this before.
 
You're safe for March, I'm pretty sure. However, that said, airlines can implode quickly as viewed from a customer standpoint. During the last couple of weeks of operation, management's going to be busy packing their last minute golden parachutes and trying to hid the fact that they're doing it. Later in the year if US Air's management performance doesn't improve expotentially, I think it would be prudent for US Air customers to use appropriate caution when making advanced bookings (trvl insurance, for instance). Usually when airlines shutdown, ticketholders get stuck with worthless tickets. As far as rebooking and hotels. etc. . . . . don't count on it. Not going to happen, if history is any clue. Sure the company is liable for it, but the ticketholder must stand at the end of a really long cue of creditors. Sometimes other airlines will honor the ticket on a space-available basis in hopes of drawing your future business.
 
audrey2001,

Winglet answered the question in his last sentence. I would only add that traditionally other airlines HAVE accepted the tickets on the standby basis mentioned. Unfortunately, hotels and other expenses necessitated by any delay in travel waiting for space-available on other carriers will come out of your pocket. As winglet mentioned, your only option there would be to file a claim with the bankruptcy court as an unsecured creditor and hope to eventually get a cent or two on the dollar.

Jim
 
Actually, under Section 145 of the Aviation and Transportation Security Act, airlines are required to honor tickets on a stand-by basis of a bankrupt airline (at least for flights within the United States). The Department of Transportation has issued guidance reminding the airlines of their obligations in this regard when Vanguard and National airlines went under. They also limited the fees that could be charged to process these tickets to $25.

You'd also be able to dispute the charge with your credit card company and would almost certainly get your money back.
 
Thanks for the clarification, USLurker. As for the credit card dispute process, I assume that the cc bill would have to arrive after the company stopped operating. If the ticket was bought far enough in advance for the cc bill to be paid before operations stopped, this might not be an option - but I'll be glad to be corrected by more knoledgable folks.

Jim
 
Gee willikers! I have only been on these boards a little over 3 weeks and boy have I seen the sinking of a ship. Almost every post is getting bleaker and bleaker. We now even have PAX's concerned about the future traveling with us. How sad. With exception of a few. USA330Pilot and Usflyboi seem optimistic ONLY if we bend over and take it in the Butt. Piney Bob and itrade like to pontificate on their gand ideas of how, when, where, should, etc, etc our company should be run. They obviously are not USAirways employees. I may have missed a few, but these are the ones that stand out. With the exception of Pitbull whom I believe has more insight into all of this then those 4 put together. Just my own observations. :blink:
 
ktflyhome said:
Gee willikers! I have only been on these boards a little over 3 weeks and boy have I seen the sinking of a ship. Almost every post is getting bleaker and bleaker. We now even have PAX's concerned about the future traveling with us. How sad. With exception of a few. USA330Pilot and Usflyboi seem optimistic ONLY if we bend over and take it in the Butt. Piney Bob and itrade like to pontificate on their gand ideas of how, when, where, should, etc, etc our company should be run. They obviously are not USAirways employees. I may have missed a few, but these are the ones that stand out. With the exception of Pitbull whom I believe has more insight into all of this then those 4 put together. Just my own observations. :blink:
Funny how ones perspective on things can be . Firt pit bull comes totally from a union view only. I dont see it as bend over and take it. I see reality !!! Im not hiding and thing issuers are floating away and that time is on our side. I believe things will be fine if we get the rest of our house in order. I really do and ill say this...... Since 1989 i have not worried about what will or will not happen I do my job and good job i do at that . I dont alter my life style when it comes to things i can control Life is short too short too worry about some things out of our control .
 
US Airways will most likely not default on the $1 billion unrestricted cash requirement, which expires on June 30. The challenge will be to meet the 3rd quarter and beyond ATSB EBITDAR requirements, however, if new labor accords are obtained, expect positive news on this covenant.

Respectfully,

USA320Pilot
 
I'm banking on you guys somehow squeaking out a solution to this mess. I've even gone to the extent of booking all my travel up to 4 April. Two more remaining trips this month. PHX, LAS (twice), FLL, ABQ (U, but booked thru US) and LGA for February. And DEN, PHX, SAN, MIA for March.

I'm not bailing out yet!

:)
 
To all Passengers, Please keep flying. After All , It's an Election Year. I know it's disheartening to read all this doom and gloom day after day. It just takes a lot out of employees to be told that all the concessions that were given to this company are not enough. I believe there will be BIG changes in the near term, that will affect employees, not passengers. Thanks for flying...
 
To add my two cents -
First - I believe there is no problem with booking on US through the spring. It seems June is the next big hurdle to clear, then other important milestones arrive later in the year.

Second - I am torn over the outlook for US. I am a loyal passenger (US2) and have thought more than once about where to put the bulk of my flying in '04. Typically, I travel very little in the first 30 days of the year, but then it starts to pick up pretty quickly. I'm still debating whether to start building miles elsewhere. Don't want to jump ship, but it has crossed my mind. Hopefully, the braintrust at CCY will come out with some reassuring news soon - for me and everyone else who is weighing the same options.
 

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