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Air Italy goes bust: what you can do

air italy plane above clouds

With Air Italy going into administration, if you’ve booked flights with the airline, you’ll need to find out what to do next. We’ve created this guide on what you can do to claim compensation for your holiday.

I’ve got flights booked with Air Italy – what do I do?

Already booked flights with Air Italy? If your booked flight is on or before the 25 February, your flight will still go ahead, but with an alternative airline. If you’re due to fly before the 25 February, but your return flight is after that date, you’ll be offered a return flight with the first available airline.

If you’d rather claim for a refund for any unused flights before your flight’s departure time, Air Italy will issue you a full refund.

If you’re due to travel after the 25 February, your flight will be rescheduled with an alternative airline, or you can get a full refund from Air Italy.

Will travel insurance cover me for the collapse of airlines and travel companies?

It’s important that you check the level of cover you’ve chosen protects you against travel companies going bust. Not all travel insurance policies cover this as standard, so making sure your policy is right for you is essential.

If you have an Avanti Travel Insurance policy then the collapse of airlines is covered under our End Supplier Failure section, valid on both our Classic and Deluxe policies.

Everybody who is named on your policy should be covered up to £2,500 for compensation, as part of the End Supplier Failure cover we offer.

If you went on holiday or booked your holiday with someone who’s not covered by an Avanti Travel Insurance policy, then you would not be able to claim for their share of compensation under your policy. Even if you booked the holiday or flights. Please note that if you’re claiming against the collapse of a travel company on your travel insurance, you’ll only be eligible to claim if you cannot claim compensation by any other means.

How can I protect myself for any future travel companies or airlines collapsing?

We understand it can be worrying when a travel company or airline collapses.

It’s important that you make sure you’ll be covered for any financial failures of the business you’re buying services from. The unexpected can happen to anyone and your travel insurance is there to protect you from these risks.

Depending on how you’ve bought your holiday, you can sometimes be legally covered for compensation. (If you’ve chosen an ATOL protected holiday package, you’ll have protection for the collapse of your holiday provider.)

Having End Supplier Failure included as standard in an Avanti Classic or Deluxe policy doesn’t just cover airlines. It also allows you to claim for compensation for the financial failure of any of the following:

  • Scheduled airline
  • Hotel
  • Train operators
  • Car ferries
  • Villas abroad or cottages in the UK
  • Coach operators
  • Car or camper hire companies
  • Caravan sites
  • Campsites
  • Mobile home
  • Safaris
  • Excursions
  • Eurotunnel
  • Theme parks or attractions

To make sure you’re protected when you need it most, it’s important to check the policy wording of your travel insurance. That way, you can make sure that you’re covered for the things that are important to you.

If you’re also worried about the effects of Brexit and whether you’ll be covered for Brexit with your travel insurance, then it’s worth checking with your provider to find out how they can cover you for specific circumstances.

First published: 23 September 2019


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