Scheduled Flights
There is no consumer protection (for either advance payments or for repatriation
provision) in the event of financial failure of a scheduled airline whether
a traditional IATA airline or Low Cost Carrier.
If an IATA airline fails, arrangements might be put in place to protect bookings as a result of agreements reached between the IATA airlines themselves and, in particular airlines of any alliance of which the failed airline may have been a member.
Insurance
Scheduled airline failure insurance can be purchased to protect against
the risk of airline failure, but care should be taken to understand any
exclusions (typically any airline in chapter 11) and limits (typically
up to £1,500 per ticket).
Most standard travel insurance policies will not provide insolvency protection.
Credit Card Payments
Where payment has been made by a credit card some protection may be available
under the Consumer Credit Act, but only where the payment is made directly
to the airline and not on a debit or charge card.
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