If your airline has gone bust, don't panic completely! Depending on the airline's situation and the payment method that you chose to pay for your flights, you might be entitled to some money back. If you've purchased your flights with Alternative Airlines and we receive a refund from the airline, we'll always refund the money back to you.
Check your travel protection that you have booked with a third party. If you've taken out comprehensive cover, you'll most likely be covered by that company and will be able to claim some or all of your money back. Admittedly, it's rare that travel protection will cover a bust airline as standard; however, by contacting your provider before booking the flight, you should be able to arrange something with them if you're making a big flight purchase and want peace of mind. However, we do not provide travel insurance.
If you've purchased your flight via credit card, you might be able to claim your money back through your credit card company. Most credit card companies will refund you any purchase that is between $100USD–$30,000 USD. However, it's important to note that different countries have different rules.
In the UK, it's much easier to claim money back off your credit company if an airline goes bust, as people in the UK are protected by Section 75 of the UK Consumer Credit Act. You'll first need to try and contact the airline or travel company that you booked with to see if there's anything that they can do. If you can't get an answer because the company has gone into liquidation, you'll then have to write to your credit card company, requesting a refund under Section 75 of the UK Consumer Credit Act.
In the US, it's fairly similar. Although the US law under Section 170 of the Fair Credit Billing act doesn't force credit card companies to protect and refund purchases, in almost all cases, credit card companies will refund flight purchases if the airline has gone bust.
If you have made your flight purchase with a debit card, you won't be protected by law. However, many major card providers, such as Visa, Mastercard, and American Express have schemes in place that will get you your money back if your airline goes bust and you don't get to use your flight. This is called a chargeback.
However, this will completely depend on the airline's situation. A chargeback reverses the transaction from the airline to your debit card. If the airline has gone into liquidation and is completely out of money, you're unlikely to receive a refund. Chargebacks can also take considerably longer than other refunds, with a timeframe of between 45–120 days for the money to show in your account.
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