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Flybe goes bust: Am I covered?

Posted on March 5, 2020 by Lucy Hancock
flybe plane in flight

What to do if your travel company goes bust

Flybe, the largest independent regional airline in Europe, has gone into administration.

In the last couple of years, other holiday companies and airlines have also gone bust including Thomas Cook, Fly Italy, Flybmi, Super Break and Late Rooms.

Hearing about trusted companies filing for administration and going bust can feel shocking.

But there are regulations that can help you to claim compensation if you find that a supplier you’ve chosen goes bust.

I have a flight booked with Flybe – what happens now?

Unfortunately, if you have a flight booked with Flybe, your flight will not be going ahead. The airline has told customers not to travel to the airport, unless you have arranged an alternative flight with another airline.

It’s been reported that a refund from Flybe is very unlikely. Instead, you may be refunded or receive compensation if you bought your flights with a credit or debit card. It’s important that you contact your credit or debit card provider for information on whether your flight money can be refunded.

If you have End Supplier Failure on your travel insurance, you may be able to claim for compensation up to your policy limits.

Your rights when it comes to claiming your holiday 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 travel company going bust if you bought the tickets on your credit card, contact your credit card company directly.

Debit card

While debit card payments aren’t covered by the Consumer Credit Act, you may be able to claim for a refund for your flight tickets with a voluntary scheme known as ‘chargeback.’

The scheme is an agreement that debit card companies like Visa and Mastercard have signed up to, which lets you claim for a refund if what you’ve bought is faulty, doesn’t arrive or goes bust.

The scheme works by your debit card provider trying to claim back your money from your airline, by reversing the payment.

To try and claim against your airline going bust, contact your debit card company directly.

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

Not all travel insurance policies will cover you for the collapse of travel companies 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 compensation.

If you booked your travel or holiday 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 booked the holiday or 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 travel companies

If you’re worried about travel companies 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.

Original date published: 2 August 2019

Sources:

https://www.bbc.co.uk/news/business-51100009

https://www.theguardian.com/business/2020/mar/05/flybe-collapses-two-months-after-government-announces-rescue

https://www.flybe.com/

Lucy Hancock

by Lucy Hancock

Lucy Hancock is Staysure's Content Executive. As a specialist travel insurance provider, we aim to keep up-to-date with travel trends, all while offering tips on how to make the most of your holiday. Lucy travelled across Europe with Interrail in 2017, and her favourite destination was Budapest. She likes big books, big words and the colour yellow.