By now, you have likely heard that the Canadian low-cost airline, Canada Jetlines, grounded its planes and ceased operation unexpectedly on August 16. They are currently seeking creditor protection, but I personally doubt they will succeed, as they failed to attract financing to remain operational beforehand.
So, what happens to passengers with booked flights when an airline goes out of business? Unfortunately, there is no simple answer. It's important to act quickly, as some options may have time limits.
As a travel agent, I generally advise my clients against booking low-cost airlines unless it is the only option available for their itinerary and/or travel dates. The risks simply outweigh the benefits.
When a Canadian airline goes out of business, passengers have several options and steps they can take:
- Check for Official Announcements: Monitor news outlets and the
airline’s official website for any statements regarding the closure,
cancellations, and potential compensation options.
- Contact the Airline: If the airline is still
reachable, contact them directly to inquire about the status of your
flights and any potential refunds or credits.
- Credit Card Protections: If you booked your flight using a
credit card, reach out to your credit card company to see if they can
assist you in disputing the charge or provide any benefits related to the
cancellation.
- Look for Alternative Flights: Start searching for alternative
travel options, either with other airlines or through different modes of
transportation. Your travel advisor can assist with this, freeing you up
to follow up on the other suggestions provided here.
- Join the Conversation: Engage with other affected
passengers via social media or forums to share information and
experiences.
- Contact the Canadian Transportation
Agency (CTA): If
you need further assistance or wish to file a complaint, reach out to the
CTA for guidance regarding your rights as a passenger.
- Contact TICO (Travel Industry
Council of Ontario) to File a Claim: If applicable, register a claim for compensation as
soon as possible.
- Consider the Impact on Future
Travel: If you
have future bookings, review the terms and conditions, and consider
booking with airlines known for their financial stability.
In these challenging times, it's essential to remain proactive and informed about your options. Should you need any assistance navigating this situation or have any questions, please don't hesitate to reach out. Your travel experience matters, and I'm here to help you every step of the way.