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European Regions Airline Association (ERA) has said it supports the response International Air Transport Association (IATA) has released in regards to some governments considering new airline bankruptcy rules.

Changes include the creation of a fund for repatriating or refunding passengers but IATA, and ERA, say the creation of such a fund would decrease airline competitiveness and increase costs for European consumers.

They also say there are already enough mechanisms in place to ensure passengers are looked after and returned home in the rare occurrence of an airline ceasing operations.

ERA agrees with IATA’s recommendation of a review into existing bankruptcy laws to permit the continued operations of airlines in insolvency, allowing more passengers to complete their travel, and to consider increased priority for passenger refund claims.