What can stranded passengers do?

Passengers have limited options if they find their airline in financial difficulties

By CNN's Avril Stephens

LONDON, England (CNN) -- Passengers are used to tour operators going out of business, not airlines.

Governments have been keen to prop up ailing national airlines in the past, but the difficulties of cash-strapped Swissair has left thousands of passengers stranded.

Only one other European scheduled airline has had to stop flights in the past because of financial problems -- Bulgarian airlines earlier this year.

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David Henderson, manager of information at the European Airlines Association, told CNN: "It is virtually unknown in the world for airlines to have to halt flights. There have been only one or two instances worldwide."

But fears are turning to the Belgian flag-carrier Sabena, which is 49.5 percent owned by Swissair, and the Swiss regional subsidiary Crossair.

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Swissair passengers have been told by the airline to find alternative companies without the prospect of a refund, although Crossair is reported to be flying some of the stranded travellers.

Short of checking the balance sheet of an airline before booking in future, a limited number of avenues are available to passengers to help protect them from having their fingers burnt.

The same rules apply to the estimated 19,000 passengers caught in the Swissair crisis.

The best protection comes with a ticket bought through a tour operator or a consolidator -- those companies, which often advertise in the back of national newspapers, and which buy the tickets from the airlines to sell on cheaply.

In the UK these two groups, by law, have to take out an Air Travel Organisers' Licence to protect against problems. A European Union directive requires similar action in Europe, maintained by the individual nations' governments.

Under ATOL cover, which is organised by the Civil Aviation Authority, passengers are eligible for a full refund or an alternative flight.

If a passenger buys another ticket ATOL will pay for the cost of the initial ticket but not any upgrade.

The passenger must get in touch with their tour operator or consolidator to begin a refund claim. The no-frills low cost British airline easyJet has offered to fly some Swissair passengers on its planes for just £20 ($27).

A statement on the company's Web site said: "Following (Monday's) announcement that the entire Swissair fleet has been grounded, easyJet is offering to assist stranded passengers by flying them on services between London Luton and London Gatwick to Geneva, London Luton to Zurich, and Geneva to Barcelona and Nice for just £20.

"These special fares will be available upon production of a valid Swissair ticket at the airport sales desks. This offer of help to Swissair passengers will be valid until midnight on Friday 5 October."

Chris Mason, ATOL spokesman and assistant director at the CAA, said: "Other airlines will step in as it is in the interests of the industry not to have stranded passengers."

Swissair was forced to ground its planes

Although tour operators and consolidators are obliged under law to have ATOL protection, Mason advised passengers to make sure the cover exists when they purchase their tickets.

Difficulties arise when the tickets are business purchases or have been bought directly from the airline. Then the traveller has no protection other than that offered by the credit card company, if used.

If purchased with a credit card, the ticket usually has to be worth more than £100.

A passenger can contact the airline to become a creditor, but is unlikely to gain any satisfaction from such a route.

Travel insurance can be taken out to cover an airline becoming bankrupt but the cover varies from policy to policy.

Swissair does not have a telephone helpline, but its Web site is www.swissair.com.