Many of us tend to overlook the possibility of an airline company having financial difficulties forcing them to announce bankruptcy and end any future travel plans to their customers. Delta, Northwest, United, US Airways, and now, American, have all filed for bankruptcy over the past decade. It is important to expect the unexpected and to always be prepared for anything that could potentially disrupt your travel plans and cost you your money without your control. We wanted to provide travelers with some tips to follow in order to make sure you protect your travel investments!
Stay up to date with your airline.
Before a scheduled trip, it is always important to keep your eye out for any changes that are happening with the airline you booked with. If you are flying with one of the biggest airline companies, you will most likely be aware as soon as it happens, however, if you are flying with a smaller company you may not know right away
Have a plan b.
If your scheduled trip cannot be rebooked for another time, make you are prepared to make new travel plans. If you keep an eye on your airline carrier as well as other airlines that provide alternate flight options at the same trip date and time, you will have any easier time making new plans and knowing what’s available to save yourself the hassle and time.
Don’t expect to be reimbursed.
If your airline does in fact experience bankruptcy, most companies will not reimburse you for the total cost of the flight. Other airlines also will not honor the ticket you have previously purchased in order to help you reach your destination on time. The minimal assistance you receive will be determined depending on the company you have booked with.
Purchase travel insurance with bankruptcy/financial default coverage.
A travel insurance policy that includes financial default and bankruptcy coverage is the only way you can be sure to have the opportunity to receive reimbursement for any pre-paid costs. When purchasing a policy such as Worldwide Trip Protector plan, you must purchase your policy within 21 days of your initial trip deposit to be eligible for bankruptcy and default coverage. Coverage is applicable for bankruptcy and default of your travel supplier which occurs more than 14 days following the effective date of coverage (which means 15 days following your payment for the policy as the effective date for trip cancellation coverage is the day following your purchase).
Benefits will be paid due to Bankruptcy or Default of an airline only if no alternate transportation is available. If alternate transportation is available, benefits will be limited to the change fee charged to allow You to transfer to another airline in order to get to your intended destination.
Always be prepared for the unexpected and you will be sure not to lose your travel investments!