Flybmi Airline Collapses - Are You Covered? | Staysure ™

Flybmi Collapses, Cancelling All Flights

Posted on February 18, 2019 by Kelly Edwards
woman looking at departure boards in airport

Flybmi has announced on 16 February 2019 that it has ceased operations and is filing for administration.

All future flights provided by flybmi have been cancelled, which means that passengers will need to rearrange their flights and look to claim compensation.

The airline recommends that passengers can seek compensation for their flights from their payment card issuer, travel agents and travel insurance policies.

How to claim compensation for your cancelled flybmi flight

Flybmi has offered the following advice on how to claim compensation if you’ve booked a flight with them:

  • Customers who booked directly with flybmi should contact their payment card issuer to obtain a refund for flights which have not yet taken place.
  • Customers who have booked flybmi flights via a travel agent or one of flybmi’s codeshare partner airlines are recommended to contact their agent or airline for details of options available to them.
  • Customers who have travel insurance should contact their travel insurance provider to find out if they are eligible to claim for cancelled flights and the procedure for doing so.

Your rights when it comes to claiming your flybmi flight if you paid with a credit card

Under section 75 of the Consumer Credit Act of 1974 if you buy anything on your credit card, including flights, section 75 gives you legal protection if things go wrong.

That is, as long as the amount bought on your credit card was between £100 and £30,000.

Section 75 includes the right to claim compensation from your credit card company when companies you have bought services from go bust.

Even if you only paid a small deposit on your card and the rest of the payment via a different means, you would still be protected under section 75 of the Consumer Credit Act to make a claim.

To claim against your flybmi flight if you bought the tickets on your credit card, contact your credit card company directly.

How to check if your travel insurance covers for the collapse of airlines

Not all travel insurance policies will cover you for the collapse of airlines as standard so it’s worth checking the level of cover you have chosen.

If you have a Staysure travel insurance policy then the collapse of airlines is covered under our End Supplier Failure section which is included as standard in our Comprehensive Travel Insurance policies.

As part of the End Supplier Failure cover we provide, everybody who is named under the policy should be covered to claim up to £3,000 to compensate for the cost of their flybmi flight per person.

If you booked your flights along with somebody who is not covered by a Staysure Comprehensive Travel Insurance policy, then you would not be able to claim for their share of compensation under your policy – even if you bought the flights.

To claim against the collapse of companies on your travel insurance policy, you will only be eligible to claim if you cannot claim compensation by any other means.

How to cover yourself for future collapse of airlines

If you’re worried about airlines collapsing, then it’s really important to make sure that you’ll be covered for the financial failure of a business you’re buying services from.

You can sometimes be legally covered for compensation depending on how you’ve bought your holiday. For example, choosing an ATOL protected holiday package will mean that you have protection for the collapse of your holiday provider.

Also, if you’ve bought your holiday or services on your credit card, then you’ll be covered under section 75 of the Consumer Credit Act to claim for compensation through your bank.

If you aren’t covered for end supplier failure by the methods above or by any other policies, then having a travel insurance policy that can cover financial failure may be a good idea.

Having End Supplier Failure included as standard in a Staysure Comprehensive policy doesn’t just cover airlines. It also allows you to claim for compensation for the financial failure of any of the following:

  • Scheduled airline
  • Hotel
  • Train operators
  • Car ferries
  • Villas abroad or cottages in the UK
  • Coach operators
  • Car or camper hire companies
  • Caravan sites
  • Campsites
  • Mobile home
  • Safaris
  • Excursions
  • Eurotunnel
  • Theme parks or attractions

It’s also worth checking your policy wording to make sure that you’re covered for the eventualities that are important to you – checking what can and cannot be covered in the event of a claim as this will vary.