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Honoring tickets of insolvent airlines

Honoring tickets of insolvent airlines

The purpose of this notice is to clarify the obligation of airlines under section 145 of the Aviation and Transportation Security Act (“Act”) to provide transportation to passengers of airlines that have ceased operations due to insolvency or bankruptcy.  (P.L. 107-71, 115 Stat. 645 (November 19, 2001).)  This notice is needed because of numerous consumer complaints received by the Department regarding the treatment of passengers holding Vanguard Airline tickets by other airlines in the wake of Vanguard’s July 30, 2002, cessation of operations.

Honoring tickets of insolvent airlines, add'l information

The Department issued a notice on August 8, 2002, providing guidance for airlines and the traveling public regarding the obligation of airlines under section 145 of the Aviation and Transportation Security Act (“Act”) to transport passengers of airlines that have ceased operations due to insolvency or bankruptcy.  (P.L. 107-71, 115 Stat. 645 (November 19, 2001))  That notice, which was issued after Vanguard Airlines’ July 2002 cessation of service, was intended to provide immediate guidance in response to numerous complaints from ticketed passengers and inquiries from airlines.  On November 6, 2002, National Airlines ceased operations.  The purpose of this notice is to remind carriers that the provisions of section 145 also apply to National Airlines’ cessation of service.