Mudita Journal

The Delta Problem: What Happens to Your Plane Ticket If an Airline Goes Bankrupt?

March 30, 2006 · Filed under: Current Events, Personal
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I’ve always been curious what happens if you buy a plane ticket on an airline that subsequently goes out of business.

My mother purchased a ticket on Delta airlines to come see me on April 7th, so we’re facing that very dilemma.

Normally I like to steer clear of Delta, United, and the like … but Delta is one of the few airlines with regular flights and reasonable fares between Roanoke and Albuquerque.

So tonight I did a little research on the net and found a useful article on the subject at the Cincinnati Post.

Here are some relevant excerpts:

If Delta Air Lines pilots or Comair flight attendants make good on their threats to strike, savvy passengers could get their money back on purchased tickets.

But they might have a harder time salvaging their vacation or business travel plans.

That’s the consensus among travel professionals asked about possible work stoppages at Delta and its Comair subsidiary. [...]

Travelers can count on a full refund in case of a strike if they buy their tickets using a major credit card – Visa, Master Card, American Express or Discover. [...]

A Visa Corp. spokesman said the airline should refund tickets, but that the bank that issued the credit card used by a passenger will issue the refund if the airline doesn’t come through.

“If it cannot be resolved through the airline, then ultimately the issuer will stand behind it. They would need to file within a certain number of days, but let the issuer know just as soon as possible just to preserve their rights,” the spokesman said. [...]

Delta and Comair declined to discuss procedures in the event of a strike. Bruce Hicks, a Delta spokesman, said there would be no contingency plan in case of a pilots’ strike because there would be no airline. [...]

Parsons said Delta is likely to have agreements with other airlines that could help shuffle passengers onto empty seats, though there aren’t many to go around on flights that are mostly filled these days.

Failing such an agreement, federal law will give passengers on domestic flights another shot at finding seats on other airlines. If Delta is grounded due to a strike, the law mandates that other airlines must sell available seats on similar routes to Delta passengers for $50 each way, said Kevin Kalley, managing editor of BestFares.

“If an airline goes bankrupt and stops service, other airlines serving those routes must take ticketed passengers on a standby basis and charge $50 each way or less,” he said.

That provision would only help a minority of affected tri-state travelers because so few flights – about 10 percent – are operated by other carriers at Cincinnati/Northern Kentucky airport. That would leave very few seats for a lot of passengers.

In addition, the law does not go into effect until the fourth day of a strike, leaving passengers to fend for themselves for three.

Airlines might allow passengers to use nearby airports – Dayton, Lexington and Louisville. Passengers should call airlines or go to a ticket window or city ticket office in the event of a strike to see where they might fly from for the $50 fare.

Parsons recommended getting a refund first and making alternative arrangements later: “I would say just cash in. Don’t even think about getting into it with Delta or Comair. Just call your credit card company and let them fight it out.”

Then, get on the phone and start looking for alternate flights or renting a car, he said.

Good to know.

Credit cards provide a lot of conveniences in modern life, and it sounds like this is one of them: the ability to leverage enough consumer dissatisfaction to wrest a refund, even from a bankrupt airline.

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  • Lauren Riegner

    Thanks for posting that. I’m facing the same dillemma you were. My boyfriend is in the Army and is stationed in Germany for the next two years. My mother, sister and i have plans to go visit this summer. We purchased tickets with delta because we used our skymiles to buy them. All the other fares are now up to $1200 at the least which is unaffordable. What am i supposed to do if they go out of business right before i go over there? Or what if they go out of business while i’m there, seeing as i’m going for two and a half weeks. Please let me know if you know anything else.

    Thanks

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