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KANSAS CITY, Mo. -- Passengers who had booked flights on bankrupt Vanguard Airlines could find it easier to have their tickets honored by other carriers thanks to a federal ruling.

The U.S. Department of Transportation said Friday that airlines that fly the same routes as Vanguard Airlines must honor tickets held by Vanguard customers when space is available.

Kansas City-based Vanguard suspended operations and filed for bankruptcy protection July 30, laying off about 1,000 employees and stranding 6,500 passengers.

Vanguard officials are making last-ditch attempts to obtain new financing while in bankruptcy so that operations can resume. A court hearing scheduled for Wednesday will determine whether Vanguard will try to return to the skies or must seek liquidation.

The Transportation Department's ruling cited Section 145 of the Aviation and Transportation Security Act, which was the focus of confusion after Vanguard delcared bankruptcy.

According to that section, any airline that shares a route with another airline that has to suspend its service because of insolvency or bankruptcy "shall provide, to the extent practicable, air transportation to passengers ticketed" by the bankrupt airline.

Scott Dickson, Vanguard chief executive officer, had cited Section 145 in asking competing airlines to accommodate Vanguard passengers "at no additional cost."

According to the notice, consumers holding Vanguard tickets have until Sept. 28 under the section to arrange alternative transportation on another airline.

Customers who bought Vanguard tickets using a credit card are entitled to a refund from their credit card issuer for service they do not receive, the Transportation Department said.

But if passengers accept alternative transportation, they probably will not be eligible for a full refund on their credit card payment, the notice said.