The complete shutdown of Primera Air and now WOW Air are examples of the reality that an airline can abruptly fail. Without notice, even a large airline can shutter, leaving some passengers stranded away from home and others responsible for out-of-pocket costs for worthless tickets.
While a big U.S.-based airline hasn’t failed in recent years, financial analysts have said that Europe’s high number of low-cost startups (which are increasingly expanding to the U.S.) make those airlines’ survival questionable.
Related:12 New Air Routes for Cheap Flights in 2019 What You Need to Know When an Airline Fails
Although specific circumstances are unique in each case, you can see some patterns reoccur each time an airline fails. Here’s what you need to know about the potential threats of an airline faltering, and what an airline failure means for travelers.
Bankruptcy is not the same as airline failure.
Airlines can go bankrupt without failing, and they can fail without going bankrupt. Airlines that do go bankrupt have often used the Chapter 11 version of bankruptcy to restructure while remaining operational. American, Delta, and United have all gone through bankruptcy at least once without having to shut down operations. And many passengers probably couldn’t even tell.
Primera, on the other hand, truly failed, or defaulted. It wasn’t able to restructure its financial situation, so it just stopped operating. It did file for bankruptcy, but not all failed airlines go through that process. And as a traveler, default or failure is your real worry—not bankruptcy.
Many shaky lines find a “white knight” before they have to fold.
When a weak line faces ongoing losses and overwhelming debt, it often finds some stronger line to acquire its assets and merge operations. For example, rather than fold completely, now-defunct Trans World Airlines agreed to be bought out by American in 2001, and historic Pan American World Airways (Pan Am) was split between Delta and United in 1991. Most recently, Alaska bought the only sizable failing U.S. airline, Virgin America, in 2016 after outbidding JetBlue.
Related:How Likely is an Airline Shutdown to Affect You?
In those and other bail-outs, there are no stranded passengers or travelers stuck with worthless tickets. In fact, travelers on the failing lines typically retain even their frequent-flyer miles, absorbed into the program of the acquiring airline.
True shutdowns leave few options for travelers.
In a true default, however, airlines can leave travelers in the lurch. That’s what happened to Primera’s. In such a default, other lines typically offer reduced “repatriation” fares to stranded travelers. Travelers holding worthless tickets for future flights can request a refund if
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With its dazzling national parks, globally-renowned wineries, Andean ski resorts and top-class surf beaches, Chile is an attractive destination for travelers from around the world. Deciding you want to visit is the easy part; navigating the logistics of actually making that trip happen can be a tad trickier. Below is a useful guide to Chile’s entry requirements, including information on visa types, costs and all the details you’ll need to ensure a seamless journey in and out of the country.
Large wildfires burning across the islands of Maui and Hawaii, fueled by intense winds, turned scenic beach destinations into smoky, catastrophic scenes on Wednesday. The fast-moving flames have scorched hundreds of acres, destroyed homes and businesses, and prompted a series of evacuation orders, road closures, and power and cellphone service outages. At least six people have died.
Britain’s Monarch Airlines failed abruptly last week, leaving thousands of passengers stranded at resort destinations without a return flight. The British government is helping those travelers return home, but the airline shutdown raises the question of whether a similar collapse could happen elsewhere.
This summer, Norwegian plans to fly from New York to Belfast, Dublin, Edinburgh, and Shannon—and for these flights, “New York” means Stewart International Airport (SWF), also called Stewart Field.
These days, budget air deals aren’t hard to come by. There are plenty of flash sales and discount carriers to choose from, but not all of them are created equal. It’s become easy to find reasonable flights between big air hubs, but dreamy, far-off islands will almost always cost you more.
Passport changes are coming, and if you plan on traveling in the near future—especially if you’re among the 49 million Americans whose passports will expire in the next few years—you need to know what passport changes are in store.
Editor’s Note: This post was originally published on January 25, 2016 and was updated in December 2018. Please consult this article: Do You Still Need to Worry About the Zika Virus for 2019? for the latest info.
Looking for a reliable source of Brexit travel information? You’re not alone—the U.K.’s own lawmakers are still asking questions about the issue of borders and free travel after Brexit. As of January 31, 2020, the United Kingdom officially has left the European Union. But what’s to come still remains unclear: For the rest of the year, the U.K. will remain in a “transition” period, meaning nothing will change between now and 2021 in regards to borders and other travel-related items. Meaning, if you have a summer vacation planned to the U.K. or Europe, you shouldn’t worry about anything changing.
Due to the COVID-19 pandemic, most states have issued shelter-in-place orders and instructed residents to stay put in their homes to help flatten the curve. However, some people are still required to drive to reach jobs that have been deemed essential (or who work in states that have relaxed shelter-at-home ordinances). Others have driven to be with family or to hunker down at second homes. But is driving between states safe—or even allowed? There is some uncertainty as to whether Americans can drive domestically. Here’s what you need to know.