If you are in the unfortunate position where your airline goes bust there are several ways you can claim a refund. In this post we look at what these are.
Monarch Airline Passengers
Monarch Airlines ceased trading on the 2nd October 2017. If you are due to travel with Monarch Airlines please get in touch with them by clicking here.
If you are currently overseas and are due to travel home before the 15th October 2017 arrangements are being made to bring you home at no extra cost. A priority basis is in operation where vulnerable people, families, and children travelling alone come first.
If you were due to fly with the airline in the future click here. There is no point in going to your airport as the airline no longer operates.
Getting a Refund for your Airfare
There are a number of factors that come into play for obtaining your refund. The main ones are whether your agent or airline are Air Travel Organiser’s Licence (ATOL) protected, and whether you booked by credit card. If you booked directly with the airline or via an agent could also be a factor. In all instances you will need to show proof of purchase.
Booked Direct with an Airline by Credit Card
If your flight was over a £100 you may be able to get a refund from your credit card provider. This is because you can make a claim under Section 75 of the Credit Card Act 1974. Your credit card provider is liable for your loss as well as the airline.
If your fare was less than a £100, you might be able to claim under the Credit Card Act 1974 if your card provider covers costs under £100.
Booked by Debit Card Direct with the Airline
If you paid by debit card getting a refund becomes trickier especially if your account was still in the black after purchase. Visa, Maestro, Mastercard, and American Express use a system called ‘chargeback’ which you might be able to utilise to get your refund. Contact your bank in the first instance.
If you were in the red by a £100 or more, like a credit card you might be able to claim under Section 75 of the Credit Act 1974. Again, contact your bank.
Booked a Flight only Deal with an Agent
If you booked direct with an agent online or otherwise it is worth checking to see if your flight was ATOL protected. If it was you should have received an official ATOL certificate. If not, claiming a refund will be trickier. If you are not ATOL covered then opt for claiming a refund using your credit or debit card.
Package Holiday
If your flight came as part of a package deal you should be ATOL covered. Ensure you have the certificate to hand when making a claim. If you do not have it, contact your agent to obtain it.
Hotels and Car Hire
If your hotel and car hire was included in your booking with your agent, all of these costs should be covered under ATOL.
Making a Claim via ATOL
Your certificate should explain how to go about making a claim. Normally, it involves filling out a form or contacting your tour operator. You will need proof of purchase. You can find more information here.
Travel Insurance
If your travel insurance included SAFI cover you may be able to make a claim against the policy for your airfare. Check the details as excess payments will come into play. Few policies cover airline insolvency sadly, but it is worth checking your policy as there are exceptions.
Abroad when the Airline goes Bust without ATOL Protection
If you are abroad and your airline goes bust you will need to book a flight home with an alternative airline. You will have to front the cost in the first instance and you may be able to claim the cost of the original flight via one of the methods outlined above. Check with your insurance provider or a representative for the original airline to discuss reimbursement before booking your alternative flight.
Booking Future Flights
To save yourself a world of pain it is a good idea to ensure future bookings are made via an ATOL protected provider, and if possible use a credit card to make the booking.
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Source: Skyscanner
For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]
