Primera Air collapse – here’s what you can do if your airline goes bust!

Primera Air collapse – here’s what you can do if your airline goes bust!

The recent news that Primera Air has collapsed has caused yet another holiday meltdown, leaving thousands of travellers stranded abroad or unable to reach their destinations. Many airlines are ATOL protected, however Primera Air is not and is a further blow to travellers who will be left out of pocket as they aren’t likely to be offered refunds or flights home.

Fiona Macrae, from the consumer awareness initiative travelinsuranceexplained.co.uk, tells you what you should do if you are affected by the Primera Air collapse.

Am I protected by the Civil Aviation Authority?

Primera Air, is a Danish registered airline, and as it did not offer package holidays, it’s not covered by the CAA’s Air Tour Organisers License (ATOL), which means that the CAA will not arrange for people stranded overseas to be brought home or allow for those that have yet to travel to claim a refund.

What if I have purchased my flight as part of a package?

If your flights were part of a package holiday arranged by a tour operator or travel agent, then under the Package Travel Regulations the tour operator or travel agent concerned is responsible for providing refunds or replacement flights.

How do I get back home if I have already travelled abroad?

Unfortunately, people who booked their flights only, directly through Primera Air, will have to make their own arrangements to travel back to the UK. However it is worth seeing if any other airlines are offering ‘rescue’ seats at discounted prices to Primera Air passengers.

Can I get compensation for the Primera Air collapse?

Travellers, who have Primera Air flights but have yet to travel, may be able to recoup their flight costs in other ways. They can approach their credit card provider as they may be able to make a claim for the cost of their ticket under Section 75 of the Consumer Credit Act 1974 or if they paid by debit card, their bank) and obtain a chargeback form. Although, they will not be able to claim back any other elements of their trip (hotel, car hire etc.) from their bank or credit card company which they have had to cancel because of the Primera Air collapse.

What about travel insurance?

Those affected by the Primera Air collapse can check if they are covered under their travel insurance policy, but do not expect to be able to claim under the conventional cancellation, curtailment or travel delay sections of the policy. Most policies do not provide cover under these sections for the failure of an airline, tour operator or travel agent. The section you are looking for will be called either Scheduled Airline Failure, or End Supplier Failure.

If your policy has Scheduled Airline Failure cover, then you will be able to claim back the cost of your flight if you are unable to travel. If you are abroad the policy will pay the cost of a one-way ticket (in the class you originally booked) to get you back home. It will not cover your unused elements of the holiday such as hotel accommodation and car hire.

If you have End Supplier Failure cover then you get both the scheduled airline failure cover and the cost of any other elements of their trip (hotel, car hire etc) which you have had to cancel because of the Primera Air collapse.

Fiona Macrae from travelinsuranceexplained.co.uk said:

“Customers of Primera Air should check their travel insurance policies to see whether they are covered for scheduled airline failure, which would provide cover for the costs of the flight (if they have not travelled) or the cost of a flight home (in the same class they travelled out in if they are already abroad), or end supplier failure, which would provide cover for the costs of the flight (if they have not travelled) or the cost of a flight home (in the same class they travelled out in if they are already abroad), and also things like hotels and car hire, which have been paid for and can no longer be used.

“We would urge anyone buying a travel insurance policy to look for one that provides the scheduled airline or end supplier failure. These policies may be slightly more expensive than standard ones, but would be a couple of pounds well spent if you are affected by this situation.”

“Also customers may be able to claim their money back if they paid by credit card.”