What Happens If US Airways Goes Under?
Most analysts expect competing airlines, and even a new airline that is US Airways by another name, will honor or take over most of USAirways’ obligations, from flights to frequent flier miles. However, this process will not be simple or comfortable in all cases. Partly in response to a flood of consumer complaints following Vanguard Airlines’ cessation of service in 2002, the Department of Transportation issued a clarification on airline requirements in the wake of a bankruptcy. See the DOT Issues Guidance on Airline Requirements To Carry Passengers of Bankrupt Airlines. The nuts and bolts and then some: – Any airline flying the same route is obligated to accommodate you on a space-available basis. – The bankrupt airline is obligated to ease your way “to the extent practicable.” – However, you may be subject to a maximum $25 change fee. – You are far less likely to be stranded on a large airline like US Airways than on smaller airlines. – If you carry travel insurance, you’re covered.
