Mexicana Airlines, one of the oldest airlines in the world, with a history dating back to the 1920s, has declared bankruptcy and shut down operations. It’s an old, old story, but it brought up a brand-new argument between a friend of mine and me.
The question is, what happens to those who hold tickets on Mexicana—particularly those stranded far from home?
My friend thinks that the guvmint should either refund the price of those tickets and/or provide flights home for those stranded. After all, sez he, it isn’t their fault that the airline went bust. I disagree totally and vehemently.
Let’s say that the guvmint goes along with this idea. Each airline would know that it is not responsible for tickets already sold before a bankruptcy. Thus, why not sell like crazy even if you know bankruptcy is eminent? (Mexicana, it is reported, halted ticket sales before everything totally hit the fan). And, if you are the passenger, why not go ahead and buy tickets from shaky airlines? After all, the guvmint will guarantee the ticket. Â
Well, said my friend, why not make all the airlines share in it? Same thing—the temptation to push tickets ‘til the last minute would remain.
Things work better when the person or persons taking the risk are the ones who pay the cost when the worst happens. It makes them more cautious. The guvmint has proved over and over that it cannot protect everyone from every risk.
It should quit trying.Â
We’d love to post your comments. Please click the comment tab at the top.