Covered If Airline Goes Bust?

[Super Hans]

I'm thinking of booking a flight from BKK to LHR for August. Will my credit card company refund the cost of the flight if the airline were to go bust? It is a NAtionwide Visa card.

[mrtoad]

I'm thinking of booking a flight from BKK to LHR for August. Will my credit card company refund the cost of the flight if the airline were to go bust? It is a NAtionwide Visa card.

Which Airline are you flying with?

I think it is highly unlikely this would happen if you were flying with one of the major airlines.

[briley]

Using a UK credit card you are covered provided the fare is over GBP100 - if the airline goes bust you claim back from Nationwide.

[Ricardo]

Agreed, using a cedit-card for payment over GBP 100, means that it is insured by the credit-card company, so you should be OK.

Although we've seen a series of airlines go bust recently, it seems unlikely that any serious operator would have its' bankers 'pull the plug', immediately before the peak-earning-season. UK charter-airlines used to fold in the autumn, after the profitable summer-season of flights had been completed, and when the dire-ness of the following winter became apparent.

Arab airlines seem to have open-chequebooks, so a flight via the Gulf might make sense, and I guess Alitalia or Olympic Airways are amongst current European candidates, for problems in the current economic down-turn, so worth avoiding ?

[libya 115]

Additional Question!

Are you covered if you book and pay using a VISA debit card?

[briley]

No

[Super Hans]

I'm thinking of booking a flight from BKK to LHR for August. Will my credit card company refund the cost of the flight if the airline were to go bust? It is a NAtionwide Visa card.

Which Airline are you flying with?

I think it is highly unlikely this would happen if you were flying with one of the major airlines.

I'm thinking of the dirt cheapies - Sri Lanka and another whose name escapes me. I've seen people say SR flights were practically empty - can't see them operating for long if passenger numbers are that low.

The 100GBP thing - do you get back the total paid the amount over 100GDP?

[briley]

You get back the whole amount.

Sri Lanka airline is partially - or totally? owned by Emirates.

[dee_london]

Hmmm... you said buying a ticket from BKK to LHR (not the other way around). Does this mean you'd be buying it in Thailand?

Is it definite now that one has the same protection when buying with a credit card outside the UK/EU? I remember something in the papers about it but can't remember the outcome. If you do have it, then yes it would only apply for a credit card purchase (not debit) and over £100.

I don't think 'flagship' national carrier Sri Lankan airlines is likely to be allowed to go bust ...but then..Swiss air..

Travel is risky for credit card companies which is why for travel companies it's really hard to get credit card facilities. We had a lot of hurdles to jump when we started our company (don't get me started, it's probably harder than if you were an internet porn company). Incidentally, we don't ever use Air Asia at work as not covered by our ATOL bonding.

If you're buying a flight only in the UK, I'd be inclined to buy from one of the big online travel companies who have bonding - unless it's a BA flight, you should get the same deal or better than buying from the airline.

[cophen]

In March 2006 the OFT won an appeal in the House of Lords against Amex/Lloyds TSB/Tesco Finance. Since that appeal all transactions over £100 on UK credit cards are covered no matter where they took place.

[bkk_mike]

I thought there was a ceiling too.

i.e. The item purchased has to be over £100, and less than £30,000.

Admittedly, you'd have to be flying the family first class to get close to £30K.

[david96]

You may be covered if you have travel insurance if an airline goes into liquidation or bankcruptcy, likewise for travel agents.

[Ricardo]

I don't think 'flagship' national carrier Sri Lankan airlines is likely to be allowed to go bust ...but then..Swiss air..

... or Sabena .. "Such A Bloody Experience Never Again"

[Zpete]

DeefromfTellTaleTravel

Travel is risky for credit card companies which is why for travel companies it's really hard to get credit card facilities. We had a lot of hurdles to jump when we started our company (don't get me started, it's probably harder than if you were an internet porn company). Incidentally, we don't ever use Air Asia at work as not covered by our ATOL bonding.

Naturally, Air Asia is a point to point carrier.

Has one of the most modern aircraft fleets.

They are NOT a tour operator.

Air Asia won the 2007 top airline award, CAPA, I have used them all the time since they 1st started up.

I read your post as, your insurance, licence does not allow you to use Air Asia for your tour business.

Missing out on so much. No I do not work for AA, just an exremely satisfied user.

Don't knock AIR ASIA, brilliant concept.

Go read http://www.airasia.com/amazing/en/pageWith...tent=one_awards

[marshbags]

You may be covered if you have travel insurance if an airline goes into liquidation or bankcruptcy, likewise for travel agents.

I always thought that you were covered by your travel agent if they are members of the travel association group in Thailand.

IATA I think it is ???????

( Similar to the U.K.,s ABTA )

marshbags

Edited June 6, 2008 by marshbags