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Airline Bankruptcies: What are your rights as a passenger? The sudden collapse of a major airline, such as recent happenings with Flybe, can leave many passengers in the lurch and uncertain about their rights. What should you do if your chosen airline ceases operations or declares bankruptcy?
Refund from the Insurance Company
If you have bought a travel insurance policy or a package holiday, and an airline cancels your flight due to the airline’s bankruptcy (or any other reason) then you may be entitled to a refund. Depending on your policy, you may also be entitled to alternative transport, accommodation or any other costs associated with delays or cancellations to your journey. It is important to check the terms and conditions of your particular policy and contact your insurer as soon as possible.
Refund from Tickets Seller
If you bought your ticket directly from the airline, you may be entitled to a refund or to an alternative flight. This will depend on the type of ticket and the terms and conditions of the ticket. It may also be possible to claim a refund through your payment provider, such as a credit card company. This is because payments for tickets purchased via credit cards are usually protected under Section 75 of the Consumer Credit Act. Alternatively, you may be able to claim a refund through the Civil Aviation Authority’s Air Travel Trust or the Air Travel Organisers License.
Conclusion
It is always a frustrating and inconvenient experience when seeking a refund due to an airline declaring bankruptcy. It is important to check your insurance policy and the terms of your tickets to see what your rights are in the event of an airline bankruptcy or cancellation.
Ultimately, when you are familiar with air passenger rights and believe you may be entitled to delayed or cancelled flight compensation, find out which best flight compensation agencies can help you. You may also fill out the claim form and one of the agencies will check your flight and take your case.