Everybody climbs on the bandwagon
When Independence Air said that it planned to suspend its service Thursday, several airlines, led by US Airways, either announced or confirmed that they'll be offering reasonable fares for standby service to displaced Independence customers. Sounded like a selfless gesture from the airlines, right? Keep reading.
US Airways sent out a news release saying that for $50 one way, a passenger can book a standby flight on a US Airways route that has the same origin and destination as the Independence flight that was canceled. A reserved seat is $100 one way.
The news release left the impressionn that US Airways was making the offer as a selfless gesture, without mentioning that there's another, more compelling reason.
Other airlines, like the smaller carrier Spirit, chimed in. Biz Buzz called Delta and they said that they, too, would be joining in the offer. Prices were in line with what US Airways is charging.
Is this a sudden burst of altruism from the airline industry? Hardly. It's the law.
Section 145 of the Aviation and Transportation Security Act (November 19, 2001)requires companies like US Airways to pick up passengers of bankrupt airlines.
Each air carrier that provides scheduled air transportation on a route shall provide, to the extent practicable, air transportation to passengers ticketed for air transportation on that route by any other air carrier that suspends, interrupts, or discontinues air passenger service on the route by reason of insolvency or bankruptcy of the other air carrier.
Other regulations limit the prices they can charge as well.