Flybe crisis: here is what you can do if your airline goes bust

The much-loved British airline was saved from liquidation back in January, and has partly blamed the coronavirus outbreak for its demise.

Travellers have been advised not travel to the airport, unless they are able to secure an alternative flight.

But when does your travel insurance kick-in with a crisis like this, and are there ways to protect yourself from the continuing travel issues the UK is facing?

Can you buy travel insurance to protect yourself?

Rebecca Kingsley, from the consumer awareness initiative travelinsuranceexplained.co.uk, gives advice on what you should do if your airline goes bust.

If I made my own holiday arrangements, can I get compensation?

Travellers, who have Flybe flights but have yet to travel, will have various avenues available to them to recoup their flight costs. Firstly, they can approach their credit card provider as they may be able to claim back the cost of the flight under Section 75 of the Consumer Credit Act 1974 (or if they paid by debit card, their bank). Although, they will not be able to claim back any other elements of their trip (hotel, car hire etc.) from their bank or credit card company which they have had to cancel because of the Flybe collapse.

What if I have purchased my Flybe flight through a tour operator?

People who booked their flights as part of a package holiday may be entitled to ATOL protection. In this situation the travel company is responsible for re-booking passengers onto an alternative flight so they are able to continue with their trip or providing a full refund. Those who are abroad, will need to contact their travel company about an alternative flight home once their holiday has finished.

But will my travel insurer pay up?

Once you have exhausted all avenues as detailed above, you can approach your travel insurer, but do not expect to be able to claim under the conventional cancellation, curtailment or travel delay sections of the policy. Travellers will need to check their travel insurance policy wording for ‘Scheduled Airline Failure’ or ‘End Supplier Failure’. Most travel policies do not provide cover for this as standard, so travellers will need to check their policy carefully.

The section you are looking for will be called either Scheduled Airline Failure, or End Supplier Failure.

If your policy has the Scheduled Airline Failure, then you will be able to claim back the cost of your flight if you are unable to travel. If you are abroad the policy will pay the cost of a one-way ticket (in the class you originally booked) to get you back home. It will not cover your unused elements of the holiday such as hotel and car hire.

If you have End Supplier Failure then you get both the scheduled airline failure cover and the cost of any other elements of their trip (hotel, car hire etc) which you have had to cancel because of the Flybe collapse.

Rebecca Kingsley from travelinsuranceexplained.co.uk said:

“Flybe customers should first speak to their credit card/bank or travel agent to recuperate the cost of their flights.

“Failing that, they should check their travel insurance policies to see whether they are covered for scheduled airline failure, which would provide cover for the costs of the flight (if they have not travelled) or the cost of a flight home (in the same class they travelled out in if they are already abroad). Also look for end supplier failure, which would provide cover for the costs of the flight (if they have not travelled) or the cost of a flight home (in the same class they travelled out in if they are already abroad), and also things like hotels and car hire, which have been paid for and can no longer be used.

“We would urge anyone buying a travel insurance policy to look for one that provides the scheduled airline or end supplier failure. You may pay slightly more for these policies, but would be a couple of pounds well spent if you are affected by this situation.”