Scotland’s biggest airline Flyglobespan has collapsed after its parent company, Globespan, entered administration yesterday. All of the company’s flights have been cancelled and 800 jobs lost.
Moreover, 4,500 passengers have been stranded abroad. The Civil Aviation Authority (CAA) says it will repatriating about 1,100 of them – those who booked package holidays and are therefore protected through the ATOL scheme.
Did you buy a package holiday?
Did you only book flights?
Any customers who booked a flight through Globespan Airways Limited operating as Flyglobespan are unlikely to be covered by the ATOL scheme – ATOL only protects travellers who book through tour operators, not direct with airlines or through ticket agents.
If you paid for a flight using your credit card or Visa debit card, however, you should be protected…
Did you pay for your ticket by credit card?
Under section 75 of the Consumer Credit Act, when you pay for goods or services that cost between £100 and £30,000 on credit, the company providing credit is jointly responsible with the supplier of the goods or services if things go bad.
Customers who paid for tickets by credit card or Visa debit card should contact their card issuer in the first instance to determine whether they can claim a refund under Section 75 of the Consumer Credit Act 1974 and/or their insurance provider (see below).
Do you have travel insurance?
If you booked flights using a non Visa debit card or cash, you’re an ‘unsecured creditor,’ which means you’re basically at the bottom of the list for repayment.
As an unsecured creditor, you’ll be lucky to recover even a fraction of your money – unless of course you have comprehensive airline failure insurance, in which case your insurance company should fully reimburse you for your loss.
If you have travel insurance, check your policy to see if it provides cover for airline or accommodation failure. The type of protection provided may vary depending on the type of policy taken out. A policy may cover all or part of the cost of the original tickets or accommodation purchased.
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