| Summary: | Delay or cancellation of flights due to airline’s bankruptcy will impose some damages on passengers such as the financial burden of purchasing a ticket usually more expensive than the first one, accommodation fees, carfares and other related expenses. In different countries, as well as the european countries, due to necessity of consumer protection and importance of attracting new passengers, which is the fundamental element and requirement to survive in the aviation industry, finding a support mechanism in order to compensate such passengers is at the forefront.
First category, known as the preventive or precautionary protection, is the responsibility of the governments to provide a proper supervision on two aspects of general financial adequacy of the airline and also airline’s responsibility to provide compensation in case of bankruptcy. Contributory protection, the second category, is for the time of bankruptcy so that the damaged party, in this case the passenger, can receive adequate compensation using insurance policies, mid-airline contracts and credit card policies. Acceptance and implementation of the guideline, as an important and necessary issue in our aviation industry, will protect air passenger rights.
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