Tips if plans include bankrupt carrier
If you’re flying in the U.S. in the coming months, there’s a good chance you’ll be on a bankrupt airline. Right now, more than half of available seats are on bankrupt carriers, with Delta and Northwest recently joining Aloha, ATA, United and US Airways in that category.
In December, United will have been in bankruptcy for three years. During that time, it has transported passengers and honored its frequent-flier debt, and safety hasn’t been compromised.
Expect few problems if you’re flying on Delta or Northwest in the next six months, but after that, keep an eye on how they’re faring. Both carriers have cash in the bank, and reorganizing will help them rein in costs.
Established “legacy” airlines need to get their expenses down in order to compete with low-cost carriers.
More than 80 percent of the U.S. can now be traveled on a low-cost carrier, or by flying to an alternate airport, saving hundreds of dollars on tickets. With those options, it’s hard for legacy airlines to justify high prices. In the next three to five years, the people flying on budget airlines will exceed those flying on legacy airlines.
If you’re holding a ticket on any airline, especially Delta or Northwest, you should periodically check to see if your flight is still available. Because of downsizing, your flight may be discontinued and you may be re-accommodated on another flight. The time difference could be 50 minutes or several hours; you’ll want to know how much.
Print out your boarding pass and avoid checking luggage. Since positions will be cut, you’ll save yourself long waits at the airport.
Always purchase tickets with a credit card. Under the Fair Credit Billing Act, you may be entitled to a refund if the charge was made within 60 days of the travel date.
If you plan to redeem miles, lock in your 2006 dates and consider flying on partner airlines.
When flying on a route served only by a bankrupt airline, you may want to buy your ticket through a code-share partner. For example, Northwest offers the only flights from Dallas to Fargo, N.D., but you could buy your ticket on a Continental code share. Northwest will operate the flight, but in the unlikely event that it goes under, you’ll be protected because the ticket is issued on a nonbankrupt airline.
Through Nov. 19, travelers ticketed on a carrier that ceases operations will be protected under Section 145 of the 2001 Aviation and Transportation Security Act. It requires carriers that have space available on the route to transport ticketed passengers on a defunct airline for no more than $25. It covers travel in the U.S within 60 days of an airline shutting down.
If you’re nervous about traveling on international flights on a bankrupt airline, you may want to buy travel insurance. Be sure to get it through a third-party vendor.
Travelers skittish about booking on a bankrupt carrier should reserve on an airline not in bankruptcy such as American and Southwest. The price-conscious may not have many choices, since the bankrupt carriers probably will have cheap seats available.