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What to do when the airline you’re flying goes out of business

Feb 17, 2025

What to do when the airline you’re flying goes out of business

When you find yourself in the unfortunate situation where the airline you’re flying with goes out of business, it can be a stressful experience. However, there are steps you can take to manage the situation effectively. Below, we will outline these steps, along with some essential tips to help you navigate this challenging time.

1. Check for Official Announcements

The first thing you should do is check for any official announcements from the airline regarding their status. Visit the airline’s website or look for news articles. This will give you an idea of what has happened and what your options are moving forward.

2. Understand Your Rights

Familiarize yourself with your passenger rights. Depending on your location and the airline, you may be entitled to various forms of compensation or assistance. In the United States, for example, the Department of Transportation (DOT) has guidelines on what airlines are required to do in the event of bankruptcy.

3. Contact Your Credit Card Company

If you purchased your ticket using a credit card, reach out to your credit card company to see if they offer any travel protection services. Many credit cards provide benefits that may cover cancellations or offer refunds if the airline ceases operations.

4. Check for Refund Eligibility

If the airline has officially ceased operations, you may be eligible for a refund. It’s essential to check the airline’s bankruptcy policy, as this information may be available on their website. In most cases, you should file a refund request directly with the airline.

5. Look for Alternative Travel Arrangements

Once you confirm the airline is out of business, it’s time to search for alternative travel arrangements. Consider the following options:

Option Description
Book with Another Airline Search for flights with other airlines that operate on the same route. Be flexible with your travel dates to find the best deals.
Use Travel Points or Miles If you have accumulated travel points or miles with another airline, consider using them to book a new flight.
Check with Travel Agents Travel agents may have access to deals or refunds that are not available to the public. They can assist you in finding alternative flights.

6. File a Claim with Your Travel Insurance

If you purchased travel insurance, check the policy details to see if it covers airline bankruptcies. File a claim as soon as possible to ensure a timely response. Keep all documentation related to your travel and the airline’s closure.

7. Monitor Travel Forums and Social Media

Travel forums and social media can provide valuable insights from other passengers who may be facing the same situation. You can find tips, updates, and even potential solutions from those who have successfully navigated a similar experience.

8. Stay Informed About Your Refund

After filing for a refund, keep track of the status. Airlines that go out of business may take time to process refunds due to the high volume of requests. If you don’t receive updates, don’t hesitate to follow up with them or contact your credit card company or travel insurance provider.

9. Know the Bankruptcy Process

Understanding the bankruptcy process can help you manage expectations. Airlines that file for bankruptcy often enter Chapter 11, which allows them to restructure their debts while continuing operations. If they cease operations entirely, you may need to file a claim in bankruptcy court to recover any funds.

10. Plan for Future Travel

After resolving your immediate travel issues, consider how to plan better for future trips. Here are a few tips:

  • Research the airline’s financial stability before booking.
  • Consider booking with larger, well-established airlines.
  • Use credit cards that offer travel insurance or protections.

In conclusion, facing an airline going out of business is undoubtedly a challenging situation, but by following the outlined steps, you can mitigate some of the stress involved. Remember to stay informed, explore your options thoroughly, and seek assistance when necessary. Having a proactive approach will help ensure that your travel plans can resume smoothly.

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