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British holidaymakers at risk from airlines going bust

16 July 2018 08:24

 
British travellers are not protecting themselves against airlines going bust

British travellers are not protecting themselves against airlines going bust

Too many passengers heading abroad this summer will be travelling without adequate protection for when an airline goes bust, a new study has shown.

The Government-commissioned inquiry, ordered in the wake of Monarch's collapse, shows that travellers need more information and clarity about the risks.

The current methods of protecting passengers include travel insurance, credit cards, and the ATOL scheme.

But the report states that regulations are often confusing for passengers, meaning some pay twice for the same protection while others are unaware that they have no cover at all.

Risks and expense

The interim report of the Airline Insolvency Review suggests there is no one-size-fits-all solution to repatriating passengers in the aftermath of airline failure, as the best approach will depend on the circumstances of each case.

But it did conclude that generally the most effective option is to keep a carrier's fleet flying, although this does involve risks and expense.

When Monarch failed in October last year, all its aircraft were immediately grounded and the Civil Aviation Authority leased and chartered aircraft to repatriate almost 84,000 passengers to the UK at a cost of £60 million.

The Airline Insolvency Review found that there is a one-in-four chance of one of the UK's 17 biggest airlines crumbling in any one year.

Large numbers

Peter Bucks, chairman of the review, said: "When an airline goes out of business, it can affect large numbers of people who can often look to their government and the taxpayer to assist them in their hour of need. Too many do not have protection of their own, too often requiring the taxpayer to step in.

"Even though airline insolvencies are relatively rare, we need to be prepared to deal with the consequences for passengers when one occurs. Ensuring all passengers can get home requires organisation, funding and in many cases more than simply re-booking onto other flights."

The review warned that even on the world's busiest route, London - New York, there would not be enough spare capacity to ensure all passengers can complete their journeys without significant delay if an airline with a high market share collapsed.

In the case of British Airways failing, there would be nearly four passengers chasing each available alternative seat, according to the inquiry.

A final report is due to be published at the end of the year.

If you're flying away with your family this summer, make sure you have the best cover for you and your loved ones. Take a look at our dedicated family travel insurance options and give yourself peace of mind on your holidays.

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Travellers stranded for days at Trudeau airport after new discount airline cancels flights

More than 100 tourists are stranded in Montreal after their flight back to Europe was cancelled over the weekend.

Spanish-based Level airline began operating in Montreal with direct flights to Paris 2 weeks ago

CBC News · Posted: Jul 16, 2018 8:15 PM ET | Last Updated: July 16
passenger Adrienn Nagy says she has no information about when she will be able to fly back home to Europe. She was supposed to leave Montreal last weekend. (CBC)

More than 100 tourists are stranded in Montreal after their flight back to Europe was cancelled over the weekend.

The Spanish discount airline Level had a flight scheduled to leave Montreal for Paris on Saturday evening.

But two hours before the departure time, passengers found out the flight had been cancelled.

Adrienn Nagy, from Hungary, took a train to Paris and then took a cheap flight to Montreal for a two-week vacation. Ever since Saturday's flight was cancelled, she's been staying in a hotel while trying to get more information from the airline.

"It's really bad because I cannot even say anything to my employer. I'm stuck in Canada, I don't know when I can go, and I am updating my manager with information that all of the flights are cancelled," Nagy said.

Nagy and three others from Hungary went back with their luggage to Trudeau airport Monday, thinking they'd be on the evening flight. But the departure board showed service was cancelled again.

"I don't know when I'll go back. I don't even know the date. I cannot tell you when, and nothing is happening, and I don't get contacted. It's not the best experience."
level-flight-cancelled.jpgTwo Level flights from Montreal to Paris were cancelled in three days. The company says it was for 'operational reasons.' (CBC)

In a statement, Level told CBC News that flights were cancelled due to "operational reasons," and it apologizes for the disruption.

"Our colleagues are working on re-booking customers onto alternative flights or re-routing everyone affected."

Level began operating direct flights from Paris to Montreal two weeks ago.

It says the next flight to Paris may be on Thursday or Saturday — a full week after passengers' original scheduled departure.

The Office de la protection du consommateur says that Quebec travellers can get reimbursed for cancelled flights, but only if they've booked their trip via a travel agency that holds a specific licence.

That licence gives customers access to a compensation fund.

"This fund can be used to reimburse you when a paid service is not rendered, for instance, following the closure of an airline. You cannot benefit from these forms of protection if the agency does not hold a licence, or if you make a reservation directly with the service provider (hotel, airline, etc.)," the bureau's website states.

It says travellers can verify which travel agencies are licensed by doing a search on its website.

 

With files from CBC reporter Matt D'Amours

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The count have moved from 100 to 800.

800 low-cost airline passengers stranded in Montreal for 4 days

 
Passengers of low-cost carrier Level have been grounded after their flight to Paris was cancelled.
 
 
     
 
     
     
     
     
 
     
     
 

CTVNews.ca Staff
Published Tuesday, July 17, 2018 7:45PM EDT

Eight hundred airline passengers have been stranded in Montreal for the past four days after a low-cost airline cancelled a series of flights to Paris.

Spanish airline Level cancelled the first flight on Saturday. The next flight, scheduled for Monday, was also cancelled. The company has blamed undisclosed “operational reasons.”

The unexpected scenario triggered a domino effect. On Tuesday, a total of 800 passengers were waiting for the next flight, which won’t take off until Thursday.

 

Jessie Brillouet (left) is one of 800 passengers stranded in Montreal after Level, a low-cost airline from Spain, cancelled a series of Paris-bound flights.

Passenger Vivien Scheibel says the airline hasn’t done enough to explain to passengers what’s going on.

“(It’s) stressful because no one tried to get in touch with us, no one tried to inform us at all. So if we don’t call, we have no information,” Scheibel told CTV Montreal.

Some passengers are so fed up that they’ve abandoned any hope of making the next flight. Scheibel bought a ticket for an Icelandair flight because she couldn’t afford to wait any longer.

“There was no other option. I have a job, I have an employer who I have to attend to, because at this time I’m on unpaid leave,” she said.

In a statement, the airline said it is working on a solution.

“Our colleagues and partners have been working on re-booking or re-routing customers onto alternative flights since (the) disruption happened,” a Level spokesperson said.

Getting in touch with Level has been difficult, according to passenger Jessie Brillouet, because the airline’s desks at Trudeau International Airport are unstaffed for hours.

“It’s been already several days … that we are trying to find a solution and get answers from Level, but we don’t get anything,” said Brillouet.

Frustrated passengers have begun leaving angry posts on the airline’s social media pages. Gabor Lukacs, founder of the group Air Passenger Rights, says the strategy could help passengers get the answers they want.

“When other passengers see that this is how Level treats its passengers, they will not be making bookings. When Level sees that their bookings are dropping, they will feel urgency to fix the situation,” Lukacs said.

Regardless, the passengers will likely see compensation. According to European Union rules, passengers have the right to collect compensation if a flight headed into Europe operated by a European company is cancelled or delayed.

For journeys longer than 3,500 kilometres, compensation is 600 euros, or $923. The distance between Montreal and Paris is 5,502 kilometres.

Level has only been operating flights between Montreal and Paris since the beginning of July. The company began operations out of Barcelona in 2017.

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How much is that low cost carrier costing you now?

Good thing you got the cheapest flight.  Would be a shame to spend a little more to get back to your job on time.

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