Re: Bankrupt airlines.
Originally posted by skylinerworld
Hi,
I have a few q’s on when airlines go bankrupt:
1.When a schedualed airline goes bust do they have to get another airline to do their flights as soon as possible?
2.When a CHARTER airline goes bust do the tourists have to make their own way back on another airline or do they get picked up as soon as possible,sorry if this is confusing,I’ll explain if you have any problems with it!
thanks, 😉
skylinerworld.
1. Once an airline is bankrupt, and I mean completely bankrupt, chapter 9 and not chapter 11, they can not do anything. All activities will seize unless the caretaker says otherwise. The caretaker will normally not do that unless continuing service will gain more money than stopping service. THis is not normally the case, otherwise the airline would not be bankrupt! The sole task of the caretaker is to pay of as much of the debtors as possible. A task which is normally not met by a long shot.
A passenger who has booked a flight on a bankrupt airline, looses all money. Larger airlines are a member of an international agency that will offer (partial) refunds or arrange other transport. I believe IATA does that?
2. If the passenger bought the ticket straight from the charter airline, then the same rules apply as with a normal airline. However, most passengers buy their tickets from a tour company. Since they sold the tickets they are responsible. Therefore if their supplier (the airline) forfeits delivery, the tour company has to arrange new transport for its customers (the traveller).
In the past I heard of air forces flying their passenger configured planes to holiday spots to pick up nationals that where stranded after a bankruptcy. Suffice to say that you should not count on that to happen all the time!
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