Play cancels flights: What are your rights if your airline goes bust?

Low-cost Icelandic airline Play announced its immediate closure on Monday.

The carrier wrote on its website that it has “ceased operations, and all flights have been cancelled”.

Passengers have been advised to seek flights with alternative airlines.

Here’s what travellers need to know about their rights to refunds and compensation if a flight company goes bankrupt.

Low-cost carrier Play goes bust

Play began operating in 2019 and flew between Keflavik International Airport – outside Reykjavik – and destinations in Europe, including London Stansted, Amsterdam, Paris CDG, Alicante and Faro.

It also offered connections to Baltimore-Washington International in the US.

On Monday morning, a flight from Reykjavik to Stansted became the airline’s final service. All subsequent flights were grounded.

The collapse of the company has left around 400 staff members jobless and around 18,000 passengers stranded.

My Play Airlines flight has been cancelled. What are my passenger rights?

Normally, an airline must offer you alternative transport or refund your fare if a flight is cancelled. However, if a company ceases operations, it usually isn’t in a position to support customers.

As such, it is standard industry practice for other airlines to offer stranded passengers ‘rescue fares’ – low-cost tickets for travellers who can show they had a booking.

An announcement on Play’s website reads: “We kindly advise you to check flights with other airlines. Some carriers may offer special ‘rescue fares’ considering the circumstances.”

Travellers who have purchased a package tour are insured through the travel agency with which they bought the tour; passengers are advised to contact them directly first.

I have a future booking for Play Airlines. Can I get a refund?

For future bookings, passengers should be eligible for a refund. According to Play:

• If you purchased your ticket with a payment card, contact your card issuer regarding a refund.
• If you booked your ticket as part of a package (flight + accommodation or services) through a travel agency in the EEA, contact your travel agent for assistance.
• Some rights may also apply under EU Air Passenger regulations. In case of bankruptcy, claims should be directed to the appointed administrator.

The Icelandic Transport Authority has released further details for travellers on their website.

Passengers who purchased tickets either with credit or debit cards may apply for a refund to their card company or bank. In some cases, the same may apply to other payment methods (e.g. Netgíró).

Passengers who bought their trip from a travel agency that sold the airline ticket as part of a package tour (i.e. a combined trip where a flight is sold together with accommodation or other service components) are entitled to repatriation on the basis of pan-European rules on package tours. Passengers are advised to contact their travel agency.

If you paid with a gift certificate, bank transfer, or cash, you must file a claim with the Play’s bankruptcy estate.

Your travel insurance may also be able to help you out.

“Some travel insurance policies include scheduled airline failure (SAFI), which may help you reclaim the cost of your flight,” explains Michelle Cooper, Director of Travel Insurance at Saga.

“This is sometimes described as ‘flight cancellation’ or ‘end supplier failure,’ so it’s worth checking all policy descriptions carefully.”

This type of cover is not necessarily included in standard policies and may

only be available on higher-level policies or as an optional extension of cover, however.

I’m waiting for a flight home. Can I get reimbursed for my meals and accommodation?

Your travel insurance will likely be able to reimburse you for costs incurred while waiting for an alternative flight.

Depending on your policy, this may include:

• Reimbursement of additional accommodation or meal expenses if you’re stranded abroad.
• Cover for alternative transport arrangements if your original flight is no longer operating.
• Claiming for irrecoverable costs, such as prepaid hotels or excursions, if your trip can no longer go ahead.

“It’s important to note that cover is policy-dependent and usually requires you to show that you’ve attempted to recover costs from the airline, your card provider, or any other protection schemes first,” says Cooper.

“Keep detailed receipts and records and contact your insurer as soon as possible to confirm what help is available.”