The collapse of Italian national airline Alitalia seems unavoidable in the next several days. This Just In was the first travel blog to warn passengers about buying tickets on the airline. We've since received many emails and blog comments from readers requesting advice on what to do.
Our friends at the Wall Street Journal's Middle Seat blog spoke yesterday with Gail Hillebrand, an attorney at Consumers Union, about how to get a refund if you're ticketed on a defunct airline.
Here are the key points:
--If you buy a ticket for a flight service you don't receive--even if it's on a foreign carrier--you're covered under the Fair Credit Billing Act. Ask your credit card issuer to remove the charges from your bill.
--A credit card dispute is only worth trying if an airline has stopped flying its planes. Cancellations on individual flights don't count.
--Credit cards offer protection. Debit cards don't.
--Write your credit card issuer within 60 days after you receive the first bill with the charge.
--Keep a copy of the letter in case you need it later to prove you sent it.
--Send the letter to your credit card issuer's special address for inquiries. Don't mail it along with your monthly payment.
--Don't pay the portion of the bill that accounts for the charge.
[hat tip to the Middle Seat]
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Alitalia website would not accept my credit card, so I had to pay by Visa Debit Card (UK).
Alitalia is not (UK) ATOL protected. My Annual World Travel insurance says they won't pay for this.
Apparantly the only source of complain is Civil Aviation Authority (CAA) but they only help if you are stranded in your holiday. I doubt if they refund busted airline future bookings....
What a mess, is there a way for my case to get a refund ?
Posted By Austin on September 23, 2008, 10:29 AM
I wish they would just die, so I can put a claim in and reschedule my flight. I leave in two weeks and need the time to find another flight. This is the last time I will use a flight consolidator to by a ticket!
Posted By Peter on September 23, 2008, 6:35 PM
I had tickets on SilverJet that I had purchased with my credit card five months prior to their collapse.
My credit card company refunded my money even though it was beyond the 60 days required by law.
Try for the refund even if you think you aren't eligible.
Posted By Mike in Pennsylvania on September 25, 2008, 12:42 PM
Will this also work with resort vacations? I booked one and apparently I was only allowed 24 hours to cancel or change my reservation. I booked it in June and my plans have changed recently and the resort booking is not even till May 2009. I'm going to try to get a refund through my credit card.....
Posted By Ashley on September 25, 2008, 2:54 PM
Looks like you spoke too soon about Alitalia--there is life in it yet!
http://www.forbes.com/markets/2008/09/25/alitalia-license-italy-markets-equity-cx_je_0925markets21.html
Meanwhile, I am wondering how one could ever get a refund having booked a vacation months in advance. I generally book way in advance to get better prices and then pay off my ticket ahead of time so that I'll have fewer expenses to pay for after my vacation. Yes, I pay by credit card, but the bill would have long been paid before the trip. I can't afford to just let it sit and have interest accrue. How would a credit card company handle this--the services would still not have been rendered, but they would have been paid for?
Posted By Charlotte on September 25, 2008, 8:38 PM
We are flying a Delta codeshare with Alitalia on Alitalia equipment from JFK to FCO on Thursday. We return on a Delta plane from Pisa to JFK. Delta says that if Alitalia fails, they will book us on another Delta flight for the outbound.
Our friends are on the exact flights, only booked through Alitalia, again as a codeshare with Delta. When called, Delta told our friends that if it becomes necessary, they would assist with the outbound rebooking because of their SkyTeam affiliation and the codeshare issue. I hope for our friend's sake that it is true. They also have insurance as well. What a mess. Good luck to all with this issue.
Posted By JM on September 26, 2008, 8:21 AM
Re: Codeshare.
Yes, it's safer to book by codeshare. Yes, Delta may promise to get you there somehow. But maybe not at the time you expect...there may not be availability on the next flight out. Also, be sure that you CALLED Delta and that DELTA promised that they are the issuer and that they'll cover you in case of a problem. For other people reading this comment, it's important to understand that what it says on your electronic ticket may not reflect reality. For details, see this post. Read the info about "What about tickets on "codeshare" flights that have a flight number of a bankrupt airline, but are operated by another airline, or have another airline's flight number but are operated by a bankrupt airline?" on this webpage by a travel legal guru I trust:
http://www.hasbrouck.org/articles/bankruptcy.html
Here's hoping Alitalia will avoid liquidation. But the above info will be helpful in future cases.
--Sean,
Blog editor
Posted By Sean on September 26, 2008, 10:38 AM
In response to 2 of your reader's comments:
I successfully book with consolidators for my clients. They aren't the problem so you shouldn't be afraid to book with them. Knowing which travel agent to trust and which companies are covered by insurance is the key.
With regards to the inquiry about whether you can dispute charges paid for a trip that your didn't acquire insurance and have now decided not to take the trip: A reputable travel agent should have explained that you needed to purchase insurance waivers. They protect you for that. Customers have to learn to take responsibility for their purchases and not try to use their credit card companies to get their money back.
Posted By Tina's Travel Network on September 26, 2008, 11:01 AM
To the last commenter: If you were referring to my question about pre-paying by credit card....I did buy travel insurance, but was told at the time (months and months ago) that it would not cover airline failures, only circumstances like my needing to cancel due to illness. I also bought this ticket through a consolidator. I thought I did everything possible to protect myself, including purchasing by credit card, but apparently if the credit card bill has already been paid off, there is no protection. In this case anyway I guess the credit card would have to go after the consolidator, not the airline, to get a refund.
Posted By Charlotte on September 26, 2008, 12:10 PM
This is a very timely post. I am presently awaiting the outcome of a claim I have with 2 small airlines that went bankrupt. One went bankrupt, but gave all it's bookings to the other. Then it went under as well. I had paid for this flight months ago, so the charge has already been completed. Now it's up to my credit card company to investigate, and hopefully I'll get my money back. I had to re-book on a third airline, as I still have to get to my destination. It's been a month now, since I forwarded all my supporting documents to the cc company. I hope to hear some POSITIVE news soon.
Posted By Sue on September 26, 2008, 3:57 PM
I had early (three months) purchased flights to Hawaii for April 4th. ATA went under 24 hours before flight. American Express was called immediately and took a long time (ten weeks to resolve) and refund our card. The idea was that services weren't rendered.
After 9-11 Travelocity intervened and got an airline to make a check refund from a cancelled flight reserved through them. Seemed very out of the rules for the helpfulness so I use them often.
Posted By rob d on September 30, 2008, 12:02 AM
I had a flight with Delta airlines in July 25 , 2008. From Amsterdam to Baltimore.
I had 2 cancellations and 2 delays.
I have sent an email and they did not even response.
How should i go about puttin in another claim.
I am very dissapointed in their service.
Posted By simony on October 15, 2008, 8:25 AM