It’s important you know your rights should your airline or travel agent go bust.
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Flybe collapses: what happens next
Flybe has become the latest airline to collapse, leaving many passengers stranded.
The regional airline's entire fleet has been grounded and passengers with upcoming Flybe flights have been told not to bother turning up at the airport.
The failure is becoming an all-too-familiar story, with both WOW and Monarch airlines going under in recent years.
As expected Flybe has gone into administration. EY appointed as administrators.
— Clodagh Rice (@ClodaghLRice) March 5, 2020
If you’re booked on a Flybe flight advice is don’t go to the airport - the airline says unfortunately it is not able to arrange alternative flights for passengers.
Customers to monitor CAA site https://t.co/X2s87UOyXp
Flybe passenger? Here's what to do
If you're stranded somewhere or absolutely need to fly today, your only option is to book a flight on another airline, but be prepared to pay an inflated price as many rivals are hiking their fares in response to increased demand.
Once you're home and settled, it's time to set about getting your money back for that Flybe flight.
While a direct refund from the airline is unlikely, there are thankfully various other routes you can try, which we'll run through below.
Contact the airline anyway
If the airline, tour provider or accommodation you’ve booked has collapsed or looks on the verge of doing so, contact them directly.
Whilst this might seem pointless if no one is there to pick up the phone, it’s a prerequisite for many other strategies explained below, such as Section 75 and chargeback.
Don’t be tempted to cancel any flights before the official confirmation that an airline has gone out of business as you’re unlikely to get your money back.
If the airline cancels your flights and is still in business, you’re entitled to a refund under EU law.
How to claim compensation for delayed and cancelled flights
Don’t rely on ATOL
Will travel insurance cover it?
Potentially, provided you picked the right policy (and indeed have any travel insurance).
Look out for provisions covering ‘scheduled airline failure’ and ‘financial failure’: the latter could help you with hotels and tour companies that go under.
If you’re already abroad, you may have to make your own plans to get home but call your insurer to check.
Unfortunately, just 48% of travel insurance policies cover ‘scheduled airline failure’ and just a third cover ‘financial failure’ according to Defaqto, which analysed 1,000 policies.
You can search for travel insurance policies including scheduled airline failure on Defaqto’s website.
Make sure that your travel insurance covers the entire dates of your holiday, including the day flights take off, on the outbound leg, and land back in the UK, if you’re flying overnight.
And, of course, make sure the coverage and excess are both reasonable: £200 worth of cover is unlikely to make up for a ruined holiday.
Have you got travel insurance yet? Compare policies here.
Book direct with a credit card
Try chargeback
If you paid with a debit card, or paid with credit card but for less than £100, you may be able to get your money back with chargeback.
It could also be useful if you booked through a third party like a travel agent.
Chargeback is a voluntary scheme that Visa, Mastercard, Maestro and American Express have signed up to.
You’ll need to contact your bank and ask them to dispute the transaction, just make sure you contact them within 120 days of the breach of contract.
For flights, the breach of contract would be from when the flight was due to depart. However, if the airline told you earlier on that the flight wouldn’t be going ahead, the breach of contract that allows for chargeback would not apply (instead, cancellation rules would apply).
Don't forget travel insurance - compare policies and quotes here