What do you do if you have a flight planned on one of the three airlines, ATA, Champion and Aloha, that filed for bankruptcy and terminated all flights this week? First thing to do is if you paid with a credit card company, call them up and ask for a refund. An ATA insider tells us, “When an airline bills you for your ticket, they don’t receive payment–the money’s escrowed until you fly or the terms of the contract are met, i.e. one year validity limit, so the bankruptcy doesn’t affect those customers.” Elliot.org has the run-down of other options: On the press release level, United Airlines has agreed to take on Aloha Airlines passengers, but anecdotal evidence suggests the ground-level customer service reps are bungling the hand-off. Southwest has agreed to rebook ATA passengers, but the language suggests this deal is only good for flights that were codeshares between the two airlines. Lastly, if you bought your ticket with ATA by check or cash, you can claim a refund, for probably a fraction of its value, after the airline is liquidated.
What Do You Do If You Have Tickets On A Bankrupt Airline?
By Ben Popken April 3, 2008
- knowing your refund rights Don’t Get Stuck Paying For A Flight You Can’t Take; Know Your Airline’s 24-Hour Cancellation Policy
- know before you go 24-Hour Cancellation And Hold Policies For Major U.S. & International Airlines
- knowing your refund rights All Major U.S. Airlines Offer Free Cancellations Within 24 Hours, Except One
- More Ticket Troubles Senator Calls For Federal Investigation Into Airline Prices, Data Withholding
- the no fly zone Senators Want Airlines To Explain Recent Outages & Why Travelers Couldn’t Be Rebooked On Competing Carriers