With carriers accounting for nearly half the US airline industry's passenger capacity facing bankruptcy or possible failure, Congress is moving to extend a law that makes healthier airlines pick up the slack should travelers become stuck with worthless tickets.

An amendment slipped into the Senate intelligence bill would push forward for another year a provision in the 2001 airline bailout law that requires stronger carriers, within reason, to accommodate passengers whose travel plans are disrupted.

Backup service applies only when seats are available and only on overlapping routes. Fees are limited to USD$50 per round trip and travelers have 60 days after an airline ends service to make alternative plans or complete their travel.

With the industry reeling three years ago from its most severe downturn ever after the hijack attacks, Congress and consumer interests were concerned that multiple airlines might fail and leave millions of people with worthless tickets and travel alternatives that were limited and expensive.

While only one carrier, low-cost Vanguard Airlines, went under in 2002, two airlines, US Airways and United Airlines, are in bankruptcy today. Another major carrier, Delta Air Lines and another low-cost provider, ATA Airlines, are trying to avert Chapter 11.

Delta, US Airways and United alone account for nearly half of the industry's capacity. Only US Airways has said it could liquidate, possibly early next year if it does not cut costs enough and raise more cash.

The benefit, which is not supported by healthier airlines because of the fee limit, provides insurance for travelers but also helps struggling airlines hold onto business by giving consumers some assurance that the ticket they buy will be honored.

US Airways is reducing fares to keep and attract new passengers, and already projects it will lose USD$100 million between mid-September and the end of March due to customers booking elsewhere.

(Reuters)