IA Ticket Refund

 
Old Nov 14, 05, 5:14 pm
  #1  
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IA Ticket Refund

If anyone else is holding IA tickets for flights after December, you might be interested in my experience in getting tickets refunded.

On 28 Sept, I used AMEX to purchase two RT tickets for travel in January from IAD-MCO on Independence Air. After IA filed for bankruptcy, I called AMEX to ask if I should cancel the tickets now and try to get a refund, or wait until January and see if IA was still flying, and if not, would I be able to get a refund through a chargeback if IA had no money. The rep told me to do a chargeback now, as Jan would be past the 60 day chargeback limit.

I then called IA to cancel the reservation and ask for a refund. The agent told me they could cancel the reservation (for a $35.00 fee, which was okay), but that they would not refund my money, all they could do was give me a credit good for a year on a future IA flight!

I told the agent that I had no use for a credit and would like a refund, but he refused so I informed him that I was going to file a dispute with my credit card company, which I did.

TWO days later I received a letter from AMEX informing me that my account was being credited the full amount of the ticket price (no cancellation fee).

I bought new tickets on Southwest.
lost*in*cyberspace is offline  
Old Nov 14, 05, 8:37 pm
  #2  
 
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Originally Posted by lost*in*cyberspace
If anyone else is holding IA tickets for flights after December, you might be interested in my experience in getting tickets refunded.

On 28 Sept, I used AMEX to purchase two RT tickets for travel in January from IAD-MCO on Independence Air. After IA filed for bankruptcy, I called AMEX to ask if I should cancel the tickets now and try to get a refund, or wait until January and see if IA was still flying, and if not, would I be able to get a refund through a chargeback if IA had no money. The rep told me to do a chargeback now, as Jan would be past the 60 day chargeback limit.

I then called IA to cancel the reservation and ask for a refund. The agent told me they could cancel the reservation (for a $35.00 fee, which was okay), but that they would not refund my money, all they could do was give me a credit good for a year on a future IA flight!

I told the agent that I had no use for a credit and would like a refund, but he refused so I informed him that I was going to file a dispute with my credit card company, which I did.

TWO days later I received a letter from AMEX informing me that my account was being credited the full amount of the ticket price (no cancellation fee).

I bought new tickets on Southwest.
A permanent credit or a temporary credit? I did the same thing the other day and all I got was a temporary credit.
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Old Nov 14, 05, 10:40 pm
  #3  
 
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AmEx is generally much more customer friendly, so Independence probably lost the money from the tickets, plus a $35 chargeback fee, plus the maintenance to match your chargeback to the original ticket and cancel that out of the system.
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Old Nov 15, 05, 1:21 am
  #4  
emj
 
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Originally Posted by hilton-gold
A permanent credit or a temporary credit? I did the same thing the other day and all I got was a temporary credit.
Yeah, the way my last charge dispute with Amex worked was they immediately credited my account the charged amount while they notified the merchant and waited for a response. In my case, the merchant eventually (after about a month and a half) couldn't/didn't prove that the charge was valid, so Amex actually restored the charge, then gave me a 2nd credit with a different description.

Here's how it looked:

7/12 <original charge> 10.00
8/10 CREDIT PENDING INVESTIGATION OF DISPUTE -10.00
9/26 CHARGE(S) RETURNED TO ESTABLISHMENT -10.00
9/26 REBILLING OF PREVIOUSLY ISSUED CREDIT 10.00

So, if Independence proves to Amex that your purchase was valid and that they've upheld their end of the bargain so far, I'd imagine Amex will restore the charge. Of course, the airline might also be unable/unwilling to respond within whatever time frame Amex gives them and thus you'll keep your money...
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Old Nov 15, 05, 6:31 am
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It is my understanding that you are liable (or AMEX is at least) if the flights happen. Of course, there is a good chance FLYi will (unfortunately) be gone by then.
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Old Nov 15, 05, 6:51 am
  #6  
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The OP is exactly the reason Independence Air is going to fail. People do not trust that they will survive in 2006. So they try to get their money back now. Airlines make money (in part) by selling you something today that you will use in lets say 6 months. They have access to your money for 6 months. How does Independence Air have a fighting chance to survive when everyone is afraid to book and pay for tickets for travel past 1/1/06?
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Old Nov 15, 05, 11:42 am
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Most people, even huge supporters like myself, feel the writing is already on the wall. You just have to let go at some point and move on.
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Old Nov 15, 05, 1:11 pm
  #8  
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Originally Posted by greenery
The OP is exactly the reason Independence Air is going to fail. People do not trust that they will survive in 2006. So they try to get their money back now. Airlines make money (in part) by selling you something today that you will use in lets say 6 months. They have access to your money for 6 months. How does Independence Air have a fighting chance to survive when everyone is afraid to book and pay for tickets for travel past 1/1/06?
While I agree with you that there is a circular death spiral caused, in part, by bookaway and pre-emptive cancellations (like those described by the OP), I have to disagree with the portion of your quote that I bolded.

Airlines facing financial hardship most certainly don't have access to the money paid today for flights occurring six months from now. Several weeks prior to DL's Ch 11 filing, DL disclosed that its credit card processor was demanding a holdback level of $600 million to $850 million, representing cash that the credit card processor would hold until the flights were completed.

Having already filed Ch 11, FlyI is probably on a shorter leash under its credit card processing agreement. My assumption is that ticket revenue is released to FlyI when the flights depart.

Airlines are generally NOT allowed to utilize their future flight revenue as working capital. Credit card companies are much too savvy to allow that.
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Old Nov 22, 05, 12:01 am
  #9  
 
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Originally Posted by FWAAA
While I agree with you that there is a circular death spiral caused, in part, by bookaway and pre-emptive cancellations (like those described by the OP), I have to disagree with the portion of your quote that I bolded.

Airlines facing financial hardship most certainly don't have access to the money paid today for flights occurring six months from now. Several weeks prior to DL's Ch 11 filing, DL disclosed that its credit card processor was demanding a holdback level of $600 million to $850 million, representing cash that the credit card processor would hold until the flights were completed.

Having already filed Ch 11, FlyI is probably on a shorter leash under its credit card processing agreement. My assumption is that ticket revenue is released to FlyI when the flights depart.

Airlines are generally NOT allowed to utilize their future flight revenue as working capital. Credit card companies are much too savvy to allow that.

The point you bring up is valid, but not complete. The airline knows the money is 'on its way' and that they will get it. They know exactly how much it is and every detail. Thus they can spend it before they get it knowing full well that it will come.
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Old Nov 22, 05, 7:30 pm
  #10  
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The OP is exactly the reason Independence Air is going to fail.
I hardly think that the reason Independence is going under is because I cancelled my flight,

Do you think that Independence is going to find me new flights in January and pay for the cost of issuing two new IAD-MCO tickets at a last minute fare cost? I don't think so.

While I feel it's unfortunate that this airline is failing, I have to look out for my own best interests (and pocketbook). Anyone who stays on board a sinking ship is making a foolish decision.
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