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.