AeroArgentina
Topic Author
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What Happens To My Ticket If Airline Liquidates

Tue Apr 05, 2005 11:49 pm

Hello all
I am planning a trip and I found a great deal on an airline that is recieving some horrible press about liquidating soon. I was wondering what will happen to me if I buy these tickets and the airline does eventually go under?

Thanks a lot!!

It is a us based carrier flying from the us to europe and back.
 
LimaFoxTango
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RE: What Happens To My Ticket If Airline Liquidates

Tue Apr 05, 2005 11:56 pm

Your ticket won't even worth the paper its printed on.
You are said to be a good pilot when your take-off's equal your landings.
 
BCAL
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:00 am

I believe that if the airline involved is a scheduled carrier, your ticket is useless and you simply become a creditor of the airline. However, the chances are that passengers with tickets will be at the back of a long line of people hoping to receive some payment from the liquidators. If, however, you pay by credit card and the airline enters liquidation after your booking, you might be able to claim the fare back from the card issuer. That is the UK law but it might be different in the US.

[Edited 2005-04-05 17:02:12]
MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
 
MidnightMike
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:04 am

Quoting AeroArgentina (Thread starter):
Hello all
I am planning a trip and I found a great deal on an airline that is recieving some horrible press about liquidating soon. I was wondering what will happen to me if I buy these tickets and the airline does eventually go under?

Thanks a lot!!

It is a us based carrier flying from the us to europe and back.

Depends which airline you are talking about, most major airlines will honor tickets from other major airlines for a fee. If US Air were to go out of business, United/Delta/American would honor that ticket. Of course everything is based on open seats & there would be a fee involved....

Best to check to see if the airline in question has any partnerships, certainly that airline would honor the tickets...
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avek00
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:05 am

A ticket plated by a failed carrier (whether on its own routes or even the routes of another airline) is, strictly speaking, worthless, since the transporting carrier will not get paid. In some instances, however, other airlines *may* honor them for goodwill reasons or to draw down the monies owed to the failed carrier - there's no hard-and-fast guideline, and during the peak TATL travel season, it's likely that you would simply have to buy a full-fare Y ticket to get home. Your CC company might give you a refund on the defunct carrier's ticket, but there's no guarantee of that either.

IMHO, your best bet is to buy travel insurance that will cover your costs to get home in the event your airline goes bust.
Live life to the fullest.
 
avek00
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:07 am

Quoting MidnightMike (Reply 3):
Depends which airline you are talking about, most major airlines will honor tickets from other major airlines for a fee. If US Air were to go out of business, United/Delta/American would honor that ticket. Of course everything is based on open seats & there would be a fee involved....

Not true, I'm afraid. The standby rule applies ONLY to USA domestic tickets - international flights were exempted, and it wouldn't make a difference during the summer Transatlantic travel season anyways. The OP would find it nearly impossible to BUY a full-fare ticket home, much less try to standby on a defunct airline's ticket.
Live life to the fullest.
 
SK A340
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:11 am

I was in London when Dan Air went under (at least that's the story I remember). We had to take an earlier flight home (morning instead of afternoon). As a compensation we were upgraded to first, but on the BAC 1-11 it wasn't much difference.

My dad and my friends dad (both lawyers  Wink) managed to get some refund from the airline which was enough for four tickets to Paul McCartney when he played in Stockholm. This was 13-14 years ago.

/Micke
 
BCAL
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:21 am

Quoting SK A340 (Reply 6):
Dan Air went under (at least that's the story I remember).

Dan-Air never went 'under' - they were brought out by BA who paid £1 for the airline. On the day of the liquidation, most charter flights were cancelled but many scheduled flights continued although in some cases some services were combined so you had an earlier or later departure time. BA honoured all Dan Air scheduled tickets.
MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
 
SK A340
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 12:40 am

As I wrote, this was 13-14 years ago so I don't remember the details, but as you can see from my post we were treated very well.

/Micke
 
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sammyk
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 1:21 am

Why can't you name the airline? Wouldn't you get a better answer if you did instead of the general answers given?
 
BCAL
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 1:26 am

An airline's liquidation that I can remember very well is that of Laker Airways (the Skytrain Laker not Laker II or Laker Bermuda). As the receivers immediately ordered all airborne flights to return to base and grounded all departures, people suddenly found that they were holding worthless tickets and they had little chance of compensation. There were scenes at LGW but surprisingly more people were upset about the airline's and Sir Freddie's situation than those who had lost their flights.

It was partly (or principally depending whose view you took) a conspiracy by the major airlines that brought about Laker's downfall. Perhaps it was guilty consciences that the same airlines allowed Skytrain passengers to fly if they had the space available on their aircraft. As far as I can recall, they did not charge any supplement or booking fee to accept Skytrain passengers.

As most a.netters will know Sir Freddie settled out of court with the major airlines (including BA, PanAm, TWA and BCal) and received a personal award rumoured to be in excess of £5 million. Part of the out-of-court settlement was that all Laker creditors were to be paid in full. I do not know whether this extended to passengers holding worthless tickets.
MOL on SRB's latest attack at BA: "It's like a little Chihuahua barking at a dying Labrador. Nobody cares."
 
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lightsaber
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 1:28 am

Quoting BCAL (Reply 2):
If, however, you pay by credit card and the airline enters liquidation after your booking, you might be able to claim the fare back from the card issuer. That is the UK law but it might be different in the US.

US law is similar. However, its a lot less "sticky" if you fly (or not) before you pay the bill that the ticket comes in on.

Quoting Sammyk (Reply 9):
Why can't you name the airline? Wouldn't you get a better answer if you did instead of the general answers given?

Actually, I think its more respectful not to mention the airline. AeroArgentina has a valid concern; I prefer this style of post to "am I screwed because so and so is going under?" Its not like there is a plethora of USA based trans-Atlantic carriers who are in danger of liquidation, so we can all guess and be pretty sure of being correct. Best to be polite.

Quoting Avek00 (Reply 4):

IMHO, your best bet is to buy travel insurance that will cover your costs to get home in the event your airline goes bust.

I would agree. Normally I wouldn't touch travel insurance (note: my company has me well insured anyway), but in this case it makes sense.

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
AeroArgentina
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 2:36 am

Thanks for all the replies. I'll probably see how much travel insurance costs and compare it with the next airline's fare. I hate to not book an airline because of this but I might have to, I don't want to be stranded over the peak summer season, my flight dates would be May 23rd to June 7th.

Thanks again!!
 
jetdeltamsy
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 3:00 am

buy trip insurance if you buy a ticket on a struggling carrier. some airlines are already "blacklisted" and you can't buy insurance to cover them because of financial difficulties. with this type of insurance, you have to put out the money to fix the problems (i.e..a one-way ticket home, extra hotel nights, etc...) and you get reimbursed.

i'd go with a more solid company. you're in for a huge headache if the carrier you choose fails.
Tired of airline bankruptcies....EA/PA/TW and finally DL.
 
Koenie
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 3:20 am

I do believe when Sabena went under that other european carriers honored the tickets.... but I'm not at all certain...
 
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sammyk
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 3:55 pm

Quoting Lightsaber (Reply 11):
Actually, I think its more respectful not to mention the airline. AeroArgentina has a valid concern; I prefer this style of post to "am I screwed because so and so is going under?" Its not like there is a plethora of USA based trans-Atlantic carriers who are in danger of liquidation, so we can all guess and be pretty sure of being correct. Best to be polite.

Polite to who? Do you honestly think the airline cares? if it's so obvious why not just name names? At least then people would be aware of who to possibly avoid if such a situation occurs. Besides, this is just a message board, I doubt it could do much harm. Not like we're running a full page ad in the paper telling people not to fly so and so airline.
 
UN_B732
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 5:31 pm

The airline in my opinion is US Airways. Personally, I don't think their bound to liqudation.
What now?
 
andz
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RE: What Happens To My Ticket If Airline Liquidates

Wed Apr 06, 2005 10:49 pm

Friends of mine were at the end of a 5 week honeymoon in South Africa when Swissair went bang, I contacted SAA on their behalf and they asked me what the airline code was printed on the ticket (SAA is 083 and there was SA/SR codesharing at the time). Theirs was Swissair's code and they were told sorry tough shit, Swissair has your money and had to buy new tickets to get back to Germany.
After Monday and Tuesday even the calendar says WTF...
 
SK A340
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RE: What Happens To My Ticket If Airline Liquidates

Thu Apr 07, 2005 12:46 am

Quoting Andz (Reply 17):
Swissair has your money and had to buy new tickets to get back to Germany.

I had relatives from Israel (flying with Swissair) visiting during that time and they managed to fly home on Sabena without having to pay extra.
 
AMSSpotter
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RE: What Happens To My Ticket If Airline Liquidates

Thu Apr 07, 2005 1:38 am

I'm flying on a "troubled" airline to the US this Summer and I normally book with that airline directly. This time, I booked with a travel agent (similar fare) and they added Eur. 3,= as a ticket insurance; not bad.
Btw: It's not just a good deal for the customer because I believe you cannot even chose not to take the insurance. They even charge ticket insurance on profitable airlines...figure that out!
 
Planesmart
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RE: What Happens To My Ticket If Airline Liquidates

Thu Apr 07, 2005 4:23 am

AMSSpotter

'I'm flying on a "troubled" airline to the US this Summer and I normally book with that airline directly. This time, I booked with a travel agent (similar fare) and they added Eur. 3,= as a ticket insurance; not bad.
Btw: It's not just a good deal for the customer because I believe you cannot even chose not to take the insurance. They even charge ticket insurance on profitable airlines...figure that out!'

If they only charged ticket insurance on troubled airlines, you would pay EUR30 for the insurance.

Take a good look at the fine print. Some policies have surprisingly high number of exclusions, like for instance if the airline fails and you miss your flight, no compensation.
 
AMSSpotter
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RE: What Happens To My Ticket If Airline Liquidates

Thu Apr 07, 2005 9:52 am

Quoting PlaneSmart (Reply 20):
If they only charged ticket insurance on troubled airlines, you would pay EUR30 for the insurance.

Yeah, I realize that. I wasn't really complaining about it since Eur. 3,= is nothing. I would like to be given a choice, though (insurance or not) and since (I believe) all travel agencies in the Netherlands do it, there really isn't a choice. But indeed: Eur. 3,= is peanuts!

Quoting PlaneSmart (Reply 20):
Some policies have surprisingly high number of exclusions, like for instance if the airline fails and you miss your flight, no compensation

This insurance only covers bankruptcy issues (it's not a travel-insurance which, like you said, often has a zillion exclusions). It was installed not too long ago in response to some bankruptcies that left Dutch (and many other) tourists stranded.
 
swisskloten
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 08, 2005 7:41 am

Koenie, do you have any proof of this such as newspaper reports? When Swissair went under, the passengers were stuck with nothing but a piece of worthless paper. They had to buy new tickets to get home.
 
CRJonBeez
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 08, 2005 1:48 pm

i was scheduled to fly southeast airlines (i was short on cash) over the x-mas season this past year when i found out they went belly up prior to my flight to sanford. i called mastercard and they suggested i see if i could find an airline that would honor my ticket. nobody could do anything for me in time, i called MC back and they were happy to refund my money.
 
FedExIndy
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RE: What Happens To My Ticket If Airline Liquidates

Sun Apr 10, 2005 8:04 pm

The credit card companies also have begun withholding funds to an airline if the airline appears on shaky ground. They were doing that with ATA (and might still be doing that). Read an article that ATA was not getting paid from the credit card companies until the flight actually operated. This was hurting ATA's already tight cash position.
 
sevenair
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RE: What Happens To My Ticket If Airline Liquidate

Fri Apr 22, 2005 12:02 am

you pay by credit card and the airline enters liquidation after your booking, you might be able to claim the fare back from the card issuer. That is the UK law but it might be different in the US

does this apply to Visa Debit card?? Ive booked with ZOOM, perhaphs i should have sked this before i booked,
 
YYZYYT
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 22, 2005 2:06 am

In Canada many of us are painfully aware of this issue due to the recent failure of Jetsgo, on the Friday before March break, no less. The lucky ones were able to claim a refund from credit card companies (maybe) of from a compensation fund IF the ticket was purchased through a travel agent (at least there is such a fund in Ontario).
But even if they were entitled to a refund, that didn't solve the problem of people who wanted to fly or who were stranded. They had to buy replacement tickets. Flights between Florida and Canada during March break = as busy as transatlantic summer schedule at times.
 
sevenair
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 22, 2005 2:25 am

ah i see. well i hope ZOOM stay afloat this summer, im not aware of any problems, but then again, jetsGo was a bit of a surprise, im a little axious now Sad
 
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lightsaber
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 22, 2005 2:39 am

If you subscribe to "Consumer Reports," see the March (or was it April...) issue. They have an article on how to cover oneself in case an airline fails. A big part of their strategy is to buy the ticket NO MORE than 60 days in advance to get protection of US credit card laws. Note: I do not know European credit card laws, so this advice might not apply (or the time frame might differ). If you know this magazine, you know their advice is pretty good.

Quoting Sevenair (Reply 25):
does this apply to Visa Debit card??

Sadly, Debit cards are more like a check. (BY US law, your milage may vary.)

Quoting Sevenair (Reply 25):
That is the UK law but it might be different in the US

Sounds similar. What's your time frame. As note, Consumer Reports says the US time frame is 60 days to file a claim after the initiation of the purchase.

Lightsaber
"They did not know it was impossible, so they did it!" - Mark Twain
 
YYZYYT
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RE: What Happens To My Ticket If Airline Liquidates

Fri Apr 22, 2005 4:00 am

Quoting Sevenair (Reply 27):
jetsGo was a bit of a surprise

Not to those of us who:
- flew with JetsGo during the last few months;
- followed their litany of technical / operational woes (e.g., altitude restrictions);
- booked tickets on JetsGo and wondered how the [deleted] they could make money at those fares; and
- watched the news (e.g: near riots due to flight cancellations - they had to call the police to control their own irate customers on more than one occasion)...

If it's any comfort, there does not appear to be the same smell surrounding Zoom - try a search in this forum and you will see that there is nothing particularly negative (unlike JetsGo).