FlyerTalk Forums - View Single Post - insurance for airline failure?
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Old Oct 19, 2008 | 1:57 pm
  #11  
NickB
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Originally Posted by Globaliser
I don't think so. If you're in the UK and the airline cancels your ticket, my gut reaction is that the airline will generally only be liable to you to the extent of refunding the ticket, plus EU compensation (if any). A UK credit card company might therefore be liable to the same extent, but that won't always stretch to the cost of a replacement ticket.
Not under reg 261/2004. In case of cancellation (even due to, eg, a schedule change months in advance), the airline must (under Arts 5+ 8 of the Reg) offer a choice of:
a) reimbursement (and return to origin in some cases)
b) rerouting under comparable conditions at the earliest opportunity
c) rerouting at a later date at the pax convenience, subject to availability of seats.

Art 8 makes it clear that the choice between these is for the pax, not for the airline. If so, and if indeed the credit card company is in effect put in the shoes of the airline as far as liability is concerned, then jimcbob is right and I would be OK with the credit card company without the need for additional insurance. My guess, though, is that I would probably have to fight hard for that (rather than a mere reimbursement of the original ticket) and I would really prefer an insurance solution if one was available.
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