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Comments on behalf of the airline members of the International Air Carrier Association (IACA) on the questions raised in the consultation on airline insolvencies by Steer Davies Gleave. The International Air Carrier Association (IACA) represents 33 airlines serving the leisure industry.

IACA members operate over 800 state-of-the-art, environmentally efficient aircraft and directly employ more than 50,000 people. As each year IACA airlines transport over 100 million passengers to 650 holiday destinations worldwide, they claim significant experience in the transport of tourists.

In October 2010, IACA was contacted by Steer Davies Gleave, the consultancy appointed by the European Commission to undertake an impact assessment of possible options to improve passenger protection in the event of airline insolvency.

IACA’s membership includes
–    some airlines that are part of a tour operator group,
–    a few carriers that have built their business model dominantly on the do-it-yourself market
–    many airlines that run a hybrid business model, catering to both the package and do-it-yourself travel market.

This means that on many flights operated by IACA members, there will be passengers occupying blocks of seats sold through a tour operator, as well as customers that have purchased a seat-only product from a travel agent or through the internet.

Despite their different business models, IACA members have a common vision with respect to the issue of bankruptcy protection.

A full copy of IACA’s response can be viewed here.