Not working Get Stranded by WOW Air?

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[Update March 28, 2019: WOW Air has officially?ceased operations,?meaning every one of its flights have been canceled.]

In the early hours of Nov. 29, 2019, more not so good news came to ultra-low-cost carrier WOW Air.

After previously announcing it becomes purchased by Icelandair, the offer was cancelled by all parties because all conditions couldn’t be met to transfer forward. With all the buyout gone, WOW Air admits that?it’s concerned with?its near-term profitability and long-term stability.

If you will have a ticket aboard the airline or are thinking about getting one, it is time for them to think over every one of your options if it ceases operations.

The building troubles for WOW Air

The financial turmoil at the low-cost carrier started prior to?its potential agreement with Icelandair. In September 2019, the airline secured approximately $68 million in bond sales to continue flying. Because of the next month, it ended routes between three American cities – Cincinnati, Cleveland and St. Louis – along with hub in Reykjavik.

In November, the airline publicly acknowledged their concerns, warning which the fourth quarter results would be “materially worse” than originally anticipated. WOW Air cited the bankruptcy of Danish airline Primera Air, the cancellation of an “sale-leaseback” agreement and rising oil prices as donors. Mixed with their canceled merger with Icelandair and the downsizing of 4 aircraft using their company fleet, the carrier is currently focused on “securing its long-term funding” to hold operations.

WOW Air isn’t the first European airline to square serious financial issues within the last 13 months. In 2017, Air Berlin and Monarch Airlines were permanently grounded after bankruptcy. While Air Berlin was sustained with the German government until Lufthansa Group could purchase their assets, Monarch terminated service immediately and left more than 100,000 passengers stranded out of the house.

What occurs when an airline goes bankrupt?

When airlines seek bankruptcy protection, the consequences will not be immediate. After Pan Am went under at the beginning of 1991, they continued to perform until their assets were purchased by Fuel prices.

But typically, insolvency can leave customers stuck inside their destinations or scrambling to obtain their reimbursement. Eighteen months after Eastern Airlines declared bankruptcy, it abruptly close down at midnight of Jan. 19, 1991. Passengers were forced to find refunds for already purchased tickets, while those traveling had to get a new way home.

Although American Airlines helped Eastern flyers get home, passengers today weren’t so lucky. In 2008, both ATA Airlines and Skybus Airlines ended operations after personal bankruptcy. Both offered little support with their customers, leaving these phones contact their creditors for refunds and book emergency airfare or car rentals to have home.

Will my charge card travel insurance cover bankruptcy?

Because of your previous situations, holiday insurance plans may list financial insolvency being a covered situation. While using Chase Sapphire Preferred® Card, financial insolvency of a travel agency, travel agency or travel supplier whose services you booked really are a covered loss. To be entitled to these benefits, you will need to purchase as a minimum some of your airfare with your Chase Sapphire Preferred® Card card, or with all the Chase Ultimate Rewards? points you earned from spending with it.

What is “financial insolvency?” Chase defines the definition of as: “The inability of any entity to offer travel services given that it has ceased operations either adopting the filing associated with a petition for bankruptcy, whether voluntary or involuntary or because it has ceased operations as a result of a denial of credit or even the lack of ability meet debts.” If you ever purchased your tickets before the airline ceased operations, you might be covered.

Not all travel cards offer bankruptcy coverage. Some Citi bank cards earning ThankYou? Points plus the Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® usually do not offer trip cancellation or trip interruption benefits as a consequence of financial insolvency. Prior to book any ticket, be sure you browse the manual against your charge card owner’s manual for good things about see if bankruptcy is covered.

It’s equally important to know that plastic card holiday insurance is secondary to the benefits its possible you have with a traditional travel insurance plan and therefore are at the mercy of reimbursement. To take delivery of a reimbursement, you need to file a written claim. The time-frame varies by card and company.

Bottom line: Can i get yourself a WOW Air ticket to Europe?

As of the time this post is published, WOW Air is constantly on the operate ultra-low-cost flights between U.S. and Europe as well as doesn’t anticipate ending service. The carrier operates flights daily to Europe, The usa and Asia, and it is continuing with intentions to expand into India.

However, as a consequence of?the uncertainty?of their future vision, travelers should take into account if your low airfare is definitely worth possibility. If WOW Air is forced to get in bankruptcy or abruptly closes service, your European vacation could immediately spike in price because of purchasing emergency airfare.

Before buying any ticket, be sure you know very well what avenues of relief its possible you have. Most of all, ensure you can pay for a last-minute plane ticket home when you wait for travel insurance reimbursement, as claims may take 12 weeks or even more to receive paid.

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