Protecting Your Plans When Purchasing Travel

Below is a MRR and PLR article in category Travel Leisure -> subcategory Travel Tips.

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Safeguarding Your Travel Plans


If you're worried about losing money when an airline files for bankruptcy, there's reassuring news. You can take several practical steps to protect your travel investments.

Key Tips to Secure Your Travel Plans


When airlines face financial difficulties, they may declare bankruptcy yet continue operations. Here's how you can safeguard your plans:

- Use a Credit Card: Opt for credit card payments when dealing with financially unstable airlines. The Fair Credit Billing Act allows you to dispute charges for services not provided. Detailed information is available on the Federal Trade Commission’s website.

- Consider Travel Insurance: Some insurance policies offer supplier default protection. However, be aware that coverage may not apply if a vendor has filed for bankruptcy.

- Know Your Rights with Section 145: According to the American Society of Travel Agents (ASTA), if you've purchased a ticket from an airline that ceases operations, you may qualify for standby travel on other airlines.

Section 145 of the Aviation and Transportation Security Act allows passengers with tickets from bankrupt airlines to fly on a space-available basis on any airline serving that route. This must be arranged within 60 days after operations stop. Airlines can charge a maximum standby fee of $50 each way. Note that Section 145 was valid through November 30, 2006, unless extended.

- File a Claim: If you can't use the Fair Credit Billing Act or Section 145 protections, file a claim with the bankruptcy court. Instructions and claim forms are typically issued within months of a bankruptcy filing.

About ASTA


ASTA is the world's largest association of travel professionals, dedicated to helping travelers navigate complex situations.

By taking these steps, you can ensure your travel plans remain intact, even if your chosen airline encounters financial trouble.

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