Leading European regional airline Flybe, is said to be on the verge of collapse – leaving many passengers uncertain about their current and future travel plans.
According to Sky News, the carrier is responsible for over half of Britain’s domestic flights outside of London. Flybe is said to currently be ‘locked in survival talks’ as they attempt to negotiate additional funding.
The struggling airline almost collapsed in March 2019 but was bought by Virgin Atlantic, the Stobart Group and a US hedge fund who invested millions of pounds into the airline.
If the company suffers financial failure, more than 2,000 jobs will be at risk and thousands of passengers will be affected. According to The Independent there are around 920,000 passengers with advanced bookings. If negotiations to secure additional funding do not go as planned, the airline will have no choice but to cease trading.
Can I claim compensation if Flybe stops trading?
If you purchased a flight directly from Flybe, you are not ATOL protected if the travel company does go bust. That being said, you may be covered if you bought the holiday through a tour operator or travel agent, who will either make alternative arrangements or refund the full cost of your holiday.
If you have booked your flight independently you can contact your credit card company or bank who may be able to recover the costs – we advise you to keep all receipts and a record of your expenses.
As a last resort option, you may be able to make a claim through your travel insurance provided you are unable to recover the costs from any other sources. This is provided your policy covers ‘End Supplier Failure’ or ‘Scheduled Airline Failure’.
What will my travel insurance cover if Flybe collapses before I leave home?
If you booked a flight only ticket, some travel insurance policies will pay up to £7,500 under scheduled airline failure for costs directly related to your trip that you could not recover from your airline, tour operator or credit card company. This amount will differ between policies.
It’s worth noting that financial failure is not generally available as standard on most travel insurance policies so it is important to read your policy wordings carefully before purchase. You will only be entitled to compensation if you bought your policy before the collapse was declared.
What happens if Flybe collapses whilst I’m on holiday?
If Flybe collapses whilst you are away, you shouldn’t expect the government to cover the cost of bringing you back home. Unlike Thomas Cook, the majority of Flybe passengers will be able to make the journey back home by road, rail or accessible flights. You can then claim back the cost from your credit card company.
If your travel insurance policy offers cover for ‘end supplier failure’ specialist policies will pay up to £3,000 towards the cost of flights back to your home country in the event you have to cut short your trip.
What happens if Flybe is my connecting flight?
If your long-haul flight relies on a Flybe connection but you booked your overall trip with another airline, it is up to the airline to sort out flights for the rest of your journey. It’s highly possible that you will be re-booked on an alternative flight or airline.