Czech Airlines
, one of the world’s oldest airlines, announced its fold after 101 years of operation, marking the end of an era in European aviation. The airline’s demise shows a rising trend of smaller airlines trying to compete in a highly competitive business. When ordering tickets through Czech Airlines’ website after October 26, the day the carrier would cease operations, travelers were referred to its affiliate smartwings
.

CSA Czech Airlines A320 on the ground

Photo: kamilpetran | Shutterstock

Earlier this summer, another significant airline folded when Air Malta
, Malta’s national flag carrier, ceased operations after 50 years. The government announced that Air Malta would be replaced by KM Malta Airlines
, which will take over eight Airbus A320
aircraft.

This transition left many questions unanswered for passengers. With Czech Airlines and Air Malta’s closure, there were at least some forewarning or rearrangements, such as redirecting passengers to its affiliate airlines. However, not all airline closures come with advance notice.

Air Malta Airbus A320neo At Munich Airport

Photo: Markus Mainka | Shutterstock

What if the airline doesn’t announce in advance?

In many cases, airlines go bankrupt suddenly, leaving passengers stranded without any prior warning. This lack of communication can cause widespread confusion and panic, as passengers are left to navigate the aftermath on their own. Some high-profile airline bankruptcies, such as the 2017 fall of Monarch Airlines
, primera air
in 2018, and WOW Air
in 2019, all collapsed with little to no advance notice, forcing governments, rival airlines, and passengers themselves to scramble for solutions.

When an airline folds without warning, the immediate priority for affected passengers is to find a way home. Governments, such as those in the UK and Iceland during Monarch’s and WOW Air’s collapses, typically step in to organize emergency repatriation efforts. However, the availability of rescue flights and the speed at which they are arranged can vary depending on the scale of the collapse and the resources available to the government.

A Monarch Airbus A320 taxiing to the runway.

Photo: jremes84 | Shutterstock

In October 2017, when Monarch Airlines folded, the UK government and the Civil Aviation Authority (CAA) launched Operation Matterhorn, a major repatriation effort to rescue over 100,000 stranded travelers. The operation required the chartering of over 30 planes and cost the government approximately £60 million. This large-scale, coordinated effort ensured that Monarch’s passengers were brought home safely, though it also underscored the financial burden such operations can impose on governments.

Related

What Led To WOW Air’s Bankruptcy?

WOW was an ultra-low-cost Icelandic airline that collapsed into bankruptcy before turning 8 years old.

Similarly, when WOW Air ceased operations, leaving passengers across Europe and North America stranded, the Icelandic government had to work quickly to assist those affected. With limited aircraft available, many passengers were forced to book new flights, often at a significantly higher cost, although some government-sponsored flights were offered.

Rival airlines offer relief fares

Rival airlines often step in to assist during these crises, offering “relief fares” to help stranded passengers return home at a reduced rate. In previous cases, such as the collapse of Primera Air and WOW Air, rival airlines like Norwegian and Ryanair offered discounted fares to affected passengers, allowing them to travel home for a fraction of the normal price.

Primera Air Airbus A321neo Landing In Paris

Photo: GB-Photographie | Shutterstock

When Primera Air shut down, other airlines, such as Norwegian, British Airways, Delta, Virgin Atlantic, and more, also offered discounted fares to people affected by the news. But keep in mind that these reduced fares may have a cut-off date.

When Scottish airline Flyglobespan unexpectedly discontinued operations in 2009, hundreds of customers were left stranded. The firm went bankrupt unexpectedly, canceling all flights and leaving many passengers stranded throughout Europe and beyond. The fall, which affected roughly 5,000 passengers, compelled the UK government and travel organizations to step in and help organize rescue operations.

Travel Insurance and Credit Card Protections

After the alternative options were settled, there are some ways to get the money back. These can save the lives of travelers who get stuck due to an airline’s failure, which include:

  • Airline refund
  • Travel insurance claims:
  • Credit card protection:
  • Debit card chargeback
  • PayPal Buyer Protection scheme
  • ATOL protection

Many travel insurance plans cover airline insolvency, allowing clients to be compensated for the cost of canceled flights or get assistance in buying new tickets. In circumstances when the government or competitor airlines do not arrange a rescue effort, customers may be able to cover their losses solely through travel insurance.

flyglobespan

This type of insurance generally includes:

  • The cost of new flight tickets, up to the agreed limit
  • The reimbursement of unused tickets
  • The cost of flying home if your airline collapses while you’re abroad
  • The replacement of your flights with alternative transport if flights aren’t available

Related

Explained: The Importance Of Travel Insurance For Airline Passengers

Purchasing travel insurance can give you peace of mind.

Credit card companies also play an important role in protecting passengers from financial loss due to an airline collapse. In many countries, passengers who book flights using a credit card are entitled to a refund if the airline goes bankrupt before they can fly. This is because most credit card companies offer a level of consumer protection against non-delivery of services, which applies to airline tickets.

ATOL protection

Alternatively, if the booking was made as part of a package holiday, passengers are protected under the ATOL (Air Travel Organiser’s License) protection, ensuring they are either refunded or provided with alternative travel arrangements. In addition to protection under the ATOL scheme, passengers who book flights as part of a Linked Travel Arrangement (LTA) may also have some safeguards. Under an LTA, travelers who purchase two or more travel services, such as flights and accommodation, from different providers within 24 hours are entitled to similar protection.

Air_Namibia_A340-300_V5-NME_FRA_2011-5-13

In early 2021, Namibia’s national airline, Air Namibia, folded without notice and left passengers stranded across the region and internationally. With no warning, all flights were grounded, and operations ceased immediately. Travelers on Air Namibia were advised to contact their credit card providers or seek refunds through travel insurance, while those already in transit were left to arrange their own way home. This underscored the importance of personal travel protection like insurance and credit card coverage.

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