WOW Air's closure raises questions of whether consumer protections should block airline bookings when they are not likely to deliver the services they sell
of Icelandic low-cost carrier WOW Air has left passengers stranded and holding worthless tickets.
This latest airline closure raises questions of whether consumer protections should block airline bookings when they are not likely to deliver the services they sell.It is not the first time that uninformed passengers might have inadvertently booked flights on an airline that is nearing collapse. While the WOW Air website has been updated with a notice at the top of the home screen, announcing that it has ceased operations, at the time of writing the home page still offered flight search and advertised flight deals. Trying to complete a flight search resulted in a"system maintenance" page, instead of redirecting to a clear consumer warning that the airline had ceased operations.
A global insurance policy paid by airlines to protect passengers from collapse and pay for repatriation would be beneficial. It would also help screen out questionable business models, strengthening the barrier for entry into the market and ensuring that existing airlines have adequate financial reserves.
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