Airline Bankrupty: What are the legal implications for travel agencies and tour organizers?

Etiquetas: Seguros SQA Ayax avión aerolínea viaje

  • 23/01/2020

Following the disappearance of Thomas CookAirlines, along with the bankruptcies of several airlines that have occurre dover the last year, we explain what are the legal implications that travel agencies and package holiday organizers have to deal with once an airline failure occurs.

When an airline goes bankrupt, the European Union Regulation, through Royal Decree Law 23/18 of 21 December, transposing directives on trademarks, rail transport and package holidays and related travel services, establishes a series of obligations for holiday package organizers

 

BEFORETRAVELING

If the customer has not yet started his or her trip, the package organizers must set up alternative solutions to allow customers to make their trip, at no additional cost to them.

 If there are no suitable alternative flights to the contracted package...

The agents may cancel the customer's package and refund the full amount to the customers. This will only be acceptable for customers travelling to imminent or immediate future.

For those travelling more than a few weeks away...

Alternative flights should be booked to them with the least possible disruption and at no additional cost.

If the alternative flight involves significant changes in the contracted package...

Customers may cancel their reservation and receive a full refund for the holidays notenjoyed.

If after the modified arrangements the package contracted by the client turns out to beof a lower level...

Customers are entitled to a price reduction

 

According to the regulations, customers are entitled to compensation when their package is cancelled, either by the package organizer or when the customer does not accept a significant change and chooses to cancel their reservation.

An exception is when the cancellation or significant change is due to "unavoidable and extraordinary circumstances". Package organizers are not legally required to pay compensation to customers for cancelled packages.

 

 

DURING THE TRIP

If the customer has already started his trips at the time of the airline’s failure,the agents or organizers are responsible for getting the customer to the pointof departure.  

  • Booking  a flight or an alternativetransport to the point of departure at no additional cost to the customer
  • Accommodate the customer for up to 3 additional nights if the customer is unable to return to the point of origin due to unavoidable an extraordinary circumstances
  • Accommodation must be at the same level that the acoomodation booked by the client.