Money Saving Expert Martin Lewis appeared on Good Morning Britain to offer advice to travellers who are faced with cancelled bookings after Flybe announced its administration. The Exeter-based airline will no longer be operating after months of financial struggle, ceasing flights immediately and leaving hundreds of passengers with cancelled plans.
Martin Lewis offered guidance to concerned travellers about how they can get the money back.
As soon as the news broke, the Money Saving Expert was squirrelling away using experience from past airline administrations, such as the collapse of Thomas Cook last year, to uncover the best ways for passengers to get their money back.
He advised on a three-step plan and emphasised that passengers should follow these steps in order to secure their best chances.
“There’s a number of different solutions out there,” he said.
“I’ve been thinking about how to prioritise them as its not the first time we’ve seen airlines go under in the same way.”
Ask for financial reimbursement under “Section 75”
The second method is, for those who have spent over £100, to approach your card provider and ask for a refund under “Section 75”.
However, this method could be a lot slower as card providers become the ones who are responsible for the financial payout.
Martin said: “In the past, we have seen these payouts.
“This has worked very well before so I’m pretty hopeful people will get their money back.”
Go to your travel insurer for knock-on costs
“If you have knock-on costs then you would go to your travel insurer for any costs over and above that, but they will only cover you if you have scheduled airline failure which is a specific type of policy,” he explained.
Travel insurers may also cover the cost of any cancelled hotels or additional holiday plans.
However, Martin urges Britons to check the terms and conditions of their policy before they try and claim, as some policies will not cover them.
According to the Research by data analysts Defaqto almost half of travel insurance policies offer scheduled airline failure cover, while a further nine percent offer it as an additional extra.
However, worryingly that leads 42 percent of travellers with no airline failure cover.
However, Martin added that his advice is based only on similar situations he has witnessed in the past.
“If you’re in this situation it is likely you will get your money back for flights you have not received, it may not be that quick, but it’s not a panic yet.
“I haven’t got any experience of this working on Flybe because it happened overnight but in al the past occurrences this has worked.
“I can’t guarantee this will work, there might be something that I have missed.”
The airline was trading right up until last night, leaving some passengers disgruntled. However, Martin explained that a company going into administration is like a “pancake flip” and so it makes sense for them to continue business as usual right up until the moment of administration.
He explained: “If you are a trading company you are a trading company or you go into administration. It’s a binary situation so either you’re trading or you’re not.
“You can’t say it’s likely you will go into administration because if you think you are then you have to go in.”
Published at Thu, 05 Mar 2020 08:47:00 +0000