October 06, 2004
Warning of a potential run on frequent-flyer redemptions, the Business Travel Coalition and the Association of Retail Travel Agents on Monday urged the nation's airlines to extend passenger ticket protections in cases where airlines disrupt or cease operations due to bankruptcies or insolvency. According to the two groups, the Aviation and Transportation Security Act provides some protection for travelers in such cases; however, the law is scheduled to expire in November. Furthermore, the groups say it is unclear whether the law covers passengers who purchased their tickets with frequent-flyer points. "If protections were successfully communicated, a potential run on frequent-flyer redemptions, in all likelihood on struggling airlines' more stable international alliance partners, could be prevented," said Sally Watkins, ARTA vice chairman.