To address concerns surrounding airline bankruptcy, airtickets® offers a protection service that will refund your ticket if the airline you have booked declares bankruptcy. In the event of the insolvency of the scheduled airline, you are covered up to $1.740 per passenger to pay for alternative flight arrangements. If you are away and your scheduled airline declares bankruptcy, you are covered to purchase an equivalent replacement flight in order to return home. If you haven't yet travelled, we will pay for irrecoverable flight costs, should you have to cancel your trip due to your scheduled airline's insolvency.
In the event of the insolvency of the scheduled airline, we will pay you up to $1.740:
1. Prior to your departure for the cost that you have paid, should it become necessary and unavoidable for you to cancel your journey or one-way trip; or
2. In the event of insolvency after departure:
a) For any additional costs incurred by you when replacing that part of the flight arrangements with a similar standard to that originally booked; or
b) for the cost of return transportation, if curtailment of your journey is necessary and unavoidable.
In the event that your providing airline carrier declares bankruptcy after the departure of your first flight, we will compensate you for the remaining unused flights accordingly, or re-book you to the best alternative flight in the same booking class. Airline Insolvency Protection, in this case, will cover up to a max. of $870 per person.
You are required to contact us.airtickets.com, if insolvency occurs to the airline you have booked with, to get assistance with all relevant procedures. Please note that all claims regarding the airline's insolvency protection have to be received by us.airtickets.com no later than six months after the official date of the insolvency of the airline. Claims which have not been received within this period of time will be forfeited.
The airline insolvency protection does not apply if the airline has already secured itself against insolvency.
Furthermore, the insolvency protection does not cover possible refunds for insolvency of the airline due to:
• Current and impending wars, invasions, acts of terrorism or war-like conditions, civil wars, revolutions, rebellions, riots, power grabbing by military powers, confiscation, expropriation, nationalization or damage of property by government agencies or authorities.
• National unrest due to popular uprisings, strikes, lockouts, martial laws or actions of lawfully constituted authorities, and in other cases of force majeure.
Definitions according to General Terms and Conditions:
As part of these Terms and Conditions, an airline is considered insolvent if any of the following applies to the airline:
• The airline is unable to meet its payment obligations and/or became insolvent for this reason.
• Acknowledgment of insolvency by the airline.
• Assets are less than liabilities (even after deducting payment obligations).
• Suspension of discharges of the airline’s payment obligations by its creditors or notice of suspension.
• A deferment of payment obligation(s) has been requested by the airline to its creditors.
• A deferment of payment obligation(s), provided by the airline’s creditors, could not prevent the insolvency.
Further, an airline is considered insolvent if the following measures, lawsuits or other proceedings in connection with the airline have been made:
• Suspension of payments, postponing of debt discharges, liquidation, termination, insolvency administration (judicial or other) or reorganization (whether through voluntary agreement, takeover bids or by arrangement with creditors of the airline).
• A mutual agreement, statement or agreement of or with a creditor of the airline.
• Nomination of a liquidator, a judicial asset manager and a manager for the airline and its assets.
• Claims against guarantees/collaterals issued or provided in respect of the airline’s capital.
• A meeting has been called by the airline, its board of directors and other members with the aim to contribute solutions or gather documents that are related to the closure or reorganization (judicial or other) of the airline.
• The submission of a petition or a request for liquidation, insolvency administration or closure of the airline.
• The intention of directors or other authorized signatories of the airline to consult or nominate insolvency administrator, judicial administrator, other responsible persons (legal or other) or similar representatives.
• Taking further appropriate steps for applying for the creditor protection in accordance to Chapter 11 of U.S. bankruptcy law (United States Bankruptcy Code) and/or relevant applicable bankruptcy laws.
You are entitled to cancel the Airline Insolvency Protection, within 14 days from the date of purchase, provided that your departure date must be at least 14 days away. In case of cancellation, the refund process usually takes up to 15 working days following the cancellation date. Due to bank procedures, though, any corresponding amount may take 7-10 extra days before appearing on your bank statement.