The bankruptcy of an airline has major implications for you if you are travelling abroad or have booked a trip. It can be difficult and expensive to get hold of new tickets at short notice.
Danish travel providers must be registered with the Travel Guarantee Fund. So if you bought your trip from a Danish travel provider, you can get help from the Travel Guarantee Fund if the travel agent or airline company goes bankrupt.
Your rights if the travel provider goes bankrupt while you are away
The bankruptcy coverage primarily helps travellers who are stranded abroad because the travel provider goes bankrupt.
The bankruptcy coverage comprises:
- Passengers with a return ticket to a Danish airport
- Passengers who have booked a package tour
- Passengers who have bought airline tickets directly from the airline company
Whenever possible, home transport will take place on the date originally planned or close to this date. As a passenger, you can expect to be contacted by SOS International or the Travel Guarantee Fund, who will arrange your home transport. If you choose to arrange your home transport yourself, it will be at your own expense.
If you have bought a package tour with accommodation and the bankruptcy means that you must extend your stay at the destination, the Travel Guarantee Fund will arrange extra accommodation for you.
Your rights if the travel provider goes bankrupt before you start your journey
You may be able to get a refund of your trip if you must cancel a planned trip because the travel provider has gone bankrupt.
If you have bought a package tour, the Fund will refund the amount you paid for the tour (except for any travel or cancellation insurance, for which you must seek a refund from the insurance company). This coverage always applies.
If you bought your airline ticket directly from the airline company, you may be able to get a refund of prepaid amounts less 1,000 DKK in own risk. However, this option is available only if the Fund has sufficient money. In other words, you cannot be sure that you will get a refund from the Fund if you must cancel your trip.
To get a refund, you must wait for the Fund to contact you with instructions.
The travel provider usually supplies the Fund with a list of the customers affected. If you do not hear from the Travel Guarantee Fund or SOS International within a couple of weeks after the bankruptcy, you can submit a claim for a refund via the Fund’s website.
If you bought your airline ticket via a travel agent, the travel agent must arrange for you to fly with another airline. You are entitled to a refund of your money from the travel agent if you cannot travel as planned.
You may also be able to get a refund of any prepayments that you have lost and other expenses.
If you have paid by international payment card, you can get your bank or credit card company to transfer the money back to your account if the airline company goes bankrupt.
If you have a travel insurance policy, you should consider contacting the insurance company as it may cover your expenses.
Getting help in connection with a complaint
If your foreign travel agent or airline company has gone bankrupt and it is not possible to find a solution with them, you can complain to European Consumer Centre Denmark. If your travel agent is Danish and you have bought airline tickets only, you can contact the Centre for Complaint Resolution (Center for Klageløsning). If you have bought a package tour, you can contact the Travel Industry Complaints Board (Pakkerejse-Ankenævnet).
- Always pay for airline tickets by international credit card
- Check whether your insurance policy covers your losses
- Ask your bank whether it can transfer the money back to you
- Contact the estate in bankruptcy if the Travel Guarantee Fund or the provider’s insurer cannot meet your claims