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The Attorney General’s Consumer Alert of the Month:

The Sky's the Limit
By Bob McDonnell 

Darryl Jenkins has worked for some of the world’s biggest airlines. And he’s taught aviation, tourism and travel at George Washington University. After 30 years in the airline industry, he says the “friendly skies” are now more daunting than ever for consumers.

“I’ve never seen an operating environment as difficult as this one,” Jenkins said from his home in Fauquier County. “The price of jet fuel will have a longer-lasting impact on the airline industry than Sept. 11.” 

Virginians are feeling the pinch. Last month passengers were stranded after Skybus airlines announced it would cease operations. “Skybus struggled to overcome the combination of rising jet fuel costs and a slowing economic environment,” the company explained.

Sheronn Fox, of Richmond, had booked tickets for herself and her mother to fly to Ohio. She was one of those wondering about refunds, having made reservations with a now-defunct airline.

“It seemed like a great deal, but I would be leery now,” she said. “I wouldn’t want someone to get caught in the same situation I’m in.”

Ms. Fox contacted our Office, and we were able to suggest some avenues she could pursue to attempt to get a refund. 

This dire situation highlighted the issue of consumers paying for something they will receive in the future and the value of using a credit card for the transaction. Typically, paying for items immediately is encouraged over going into debt. However, due to consumer laws, the prudent way to buy something for future delivery or future use may be to pay with a credit card rather than a check or cash.

For example, anyone who purchased a ticket by credit card within 60 to 90 days before Skybus declared bankruptcy has a reasonable chance of recovering money. This is because of rights provided by the federal Fair Credit Billing Act. This Act allows consumers to dispute charges to their credit card, for services not delivered as agreed. 

You can get more information by visiting our Web site, www.vaag.com, and searching “Skybus Refunds.”

Consumer protection is an important statutory duty of the Office of the Attorney General, and our staff can help. In an age of increased consumer issues, we all must continue to be educated and vigilant.

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