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If an airline goes out of business

What should I do if the airline that is supposed to fly me home goes out of business while I am on holiday?

If you booked your flights privately, keep checking the airline’s website for information. You will probably have to buy a new airline ticket yourself. If you paid for the cancelled flight by credit card, you can ask your credit card company to refund the cost of your ticket. If you paid by debit card, you should contact your bank and ask whether a refund is available under the bank’s terms and conditions.

I just found out that the airline that I am supposed to be flying with next week has gone out of business. How do I get my money back?

If you paid for your flights by credit card, you can ask your credit card company for a refund. If you paid by debit card, you should contact your bank and ask whether a refund is available under the bank’s terms and conditions.

If you have purchased a package holiday consisting of flights and accommodation through a travel agency, contact the travel agency and ask for your money back.

If you cannot get a refund by other means, you can monitor the progress of the airline’s liquidation process. Keep checking the airline’s website for information about the liquidators and the liquidation process. Unfortunately, individual consumers are among the last to be made whole in the event of liquidation, and in most cases there are not enough funds to reimburse all creditors. It is worth remembering that the process often involves fees and can take up to several years.

Updated 26.1.2015 Print