We must protect passengers left stranded when airlines go bankrupt

"People look forward to their holidays all year, we must protect passengers left stranded when airlines go bankrupt," Labour's Brian Simpson, Chair of the European Parliament's Transport Committee, said today.

The European Parliament meeting in Strasbourg is now widely expected to pass legislation today calling on the European Commission to come up with proposals to safeguard passengers.

"We've won support from all groups of MEPs in the European Parliament for this, from the Left to the Right, except the small extremist euro-sceptic rump that includes the  British Conservatives. It seems they will be in the position of voting against a consensus that protects passengers agreed on by virtually all political parties from 27 other countries," he added.

"Over the last nine years,  77 airlines have fallen into bankruptcy, and many of these have been in the past eighteen months as the economic crises and high fuel prices have hit the airline industry hard. Even the major airlines now seem in a precarious position.

"This trend is not likely to end in the near future, so the  European Parliament's Transport Committee are pushing for something to be put in place that protects  both the passengers who  are left stranded and the people who have bought tickets for flights that can't be taken and have lost money as a result. 

"Our  resolution calls on the  European Commission to  come up with ideas that would better protect passengers and customers of bankrupt airlines,"  he said.

The resolution  suggests three possible options  to  the  European Commission:-

1) A  compulsory insurance scheme, where airlines would all have to pay a small insurance fee that would be used to compensate customers who have lost money buying tickets with a bankrupt airline, that would also provide alternative transport for  stranded passengers.

2) A voluntary insurance scheme, where passengers  could choose to pay a small fee to the airline when buying tickets that  again would be used as compensation.

3) Creation of an "EU Guarantee Fund".

When companies go bankrupt, their aircraft are impounded by national regulatory bodies. The resolution also  calls on the Commission to investigate the quick release of impounded aircraft  so these aircraft can be  used to bring stranded  travellers home straight away.