The Nation : Airline Refunds Proposed
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Rep. Sherwood Boehlert (R-N.Y.) introduced legislation to allow consumers stuck with the tickets of bankrupt airlines to receive refunds or seats on other carriers. Under the proposal, the airlines accepting the tickets would be reimbursed from the Airline and Aviation Trust Fund, which is financed largely through consumer taxes on air tickets. Boehlert, a member of the House Aviation subcommittee, said that more than one-quarter of the nation’s airlines have gone bankrupt since 1979.
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