Flybmi has announced that it would be ceasing all operations. The UK regional airline offered flights to 25 European cities and has blamed rising fuel costs and the uncertainty surrounding Brexit for its insolvency.
The airline which has a fleet of 17 and employs 376 members of staff has said they had no choice but to file for bankruptcy.
Thousands of passengers have been left stranded abroad or unable to reach their holiday destination and many more have been left out of pocket, but it is unlikely those affected will be able to claim back any compensation.
Some travel agents or tour operators may offer an alternative flight with another airline, but this will be solely down to the company and is not compulsory under any regulations.
Those who paid by credit or visa card may be able to claim back the cost of the ticket under Section 75 of the Consumer Credit Act 1974 but should check with their provider.
Passengers should also check to see if their travel insurance policy offers cover for ‘Scheduled Airline Failure’ however it is worth noting this is not usually covered as standard and requires an additional premium to be paid at the time of purchased.
Those with Scheduled Airline Failure who have not yet left the UK will be able to claim back the cost of the flight, provided the money cannot be refunded from anywhere else. Passengers who are already abroad will be able to claim back the cost of a flight home.
It is worth noting, travel insurance will not cover if it has either been purchased after the company has declared bankruptcy or announce it would be going into liquidation. More on Financial Failure can be found here.