Bust SkyEurope customers face no refunds

Wednesday, 02 September 2009 08:55

Customers of the airline SkyEurope may receive no compensation on tickets they have bought.

The Slovakian airline - which operated flights out of the UK from Luton and Manchester to destinations in the Czech Republic and Slovakia - yesterday announced it was suspending its operations.

A statement on the SkyEurope website read: "Those of you who have purchased flights with a credit card, please turn to your credit card issuing bank to seek refunds for unused portions of SkyEurope's flights.

"In case you have paid directly to SkyEurope in other means than credit card (e.g. bank transfer, cash), please be advised that a refund may not be possible."

It added customers on holiday must "order a return flight from some other airline at your own expense".

Customers are also advised to contact their insurance provider.

However, not all travel insurance policies will be able to cover the collapse of an airline.

Research by Intune, the financial arm of Help the Aged and Age Concern, found 87 per cent of travel insurance policies will not cover an individual if their airline hits the wall.

Credit card companies will only offer compensation for the cost of lost tickets - not the cost of buying new flights - and will only cover purchases over £100 under Section 75 of the 1974 Consumer Credit Act.

Many people choose to pay by debit cards over credit cards because of lower fees.

Watchdog Consumer Focus is now calling for debit card users to be given the same protection on purchases as credit card customers.

Philip Cullum, deputy chief executive of Consumer Focus, said: "As more and more companies like SkyEurope are going bust in the recession it is important that customers are given greater protection immediately.

"We are calling for customers who pay with their debit card to be given the same rights as those who pay debit card and for customers to be moved up the list of creditors of bankrupt companies."

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