The travel industry has been in major upheavel since the mid ninties and has changed dramatically. You, as a ticket-paying passenger need to be informed in order to make the best travel decisions for yourself and your family. What options do you have if you've purchased tickets on an airline that goes belly-up?
One airline's marketing slogan is, "Fly the friendly skies...", well, those skies are not very friendly for you when the airlines are in financial trouble.
The airline industry has struggled for more than a decade, even in the favorable economics of the 90's. All the major US carriers, with the exception of Southwest Airlines, have been in bankruptcy or are in the state of chapter 11 now.
Hopefully there will not be any more airline bankruptcies and I know that's wishful thinking, but it has to be recognized that it could possibly occur. Following are guidelines you should know and how an airline bankruptcy could effect you.
This may sound trite and over-simplified, but the best bet is to purchase and travel on financially stable airlines. Be informed, search for information concerning the financial condition of an airline you're considering to purchase from.
Regardless of what airline you choose to fly, travel insurance is your best and only protection in case an airline declares bankruptcy or about any other unforeseen circumstance. Before purchasing travel insurance from a provider, and there are many, be certain the policy will cover an airline bankruptcy.