More legislation for Russian carriers.
THE RUSSIAN Ministry of Transport has drafted legislation that
would require all domestic airlines operating scheduled flights to have
liability insurance. If enacted, the bill, which could enter force in
July 2012, would mandate reimbursement for stranded passengers who are
left to find alternative transport in the event of an airline ceasing
operations. The insurance would guarantee refunds for passengers if the
carriers cancel flights owing to bankruptcy or the loss of an Air
Operator's Certificate (AOC) - under current rules, this
compensation comes from federal funds. The move, which has attracted
criticism from some of the country's larger airlines, comes after
several carriers, including Region-Avia, Continent and Avianova,
unexpectedly ceased trading in 2011.