Jet Airways uncertain future – holding tickets for summer travel.

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Apr 3, 2019
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#1
Hi everyone, some concerns in advance of our summer travel dates on Jet Airways:
  • In January we purchased two roundtrip tickets USA to India via Amsterdam on Jet Airways and ticketed directly on jetairways.com for travel during July 2019.
  • KLM codeshares and operates the US-Amsterdam and Amsterdam-US sectors and Jet Airways operates the Amsterdam-India and India-Amsterdam sectors.
  • In early March it was reported that Jet Airways was in a huge financial crisis. We contacted the airline and were assured some financial resolutions were in the pipeline and the airline would be completely back on track by end March. However daily news reports contradict these assurances with massive grounding of airplanes and only a fraction of the fleet currently operational. Reports indicate lenders are attempting a bailout, but it is unclear whether the airline will survive this crisis or not.
  • Since purchasing our tickets in January, fares to India during our travel dates have almost doubled, so canceling our tickets and re-purchasing on another airline is not a viable option. Even if we do cancel, there’s no guarantee a refund will be forthcoming under the airline's current financial constraints. We are now forced to hold onto our tickets and hope the situation will be resolved.
  • Having used a Visa credit card for purchase we sent out a general enquiry to Visa via our issuing bank. Their response: they “do not see any travel protection that might cover this scenario” of supplier bankruptcy. Also since the tickets were booked almost four months ago and already well outside the 60 day period to submit a chargeback claim, Visa responded it is “unclear on how timeframe would impact eligibility for chargeback. It would be best to submit the dispute and let our team of experts review it to determine whether it was eligible to be charged back.”
My questions:
  • If the airline does go under before or during our travel what would be the status of the codeshare sectors flown on KLM? Is there any chance these sectors could be used?
  • If we do decide to cancel our tickets while the airline is still functional, will Visa honor a chargeback claim if the airline doesn’t pay – also noting that we are outside the 60 day dispute period?
Thank you for your input.
 
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#4
Thanks for the quick reponses VoR61 and Carrie Livingston. @VoR61: To my understanding airline bankruptcy is not included in a third party travel insurance. This is a more specific coverage. We were not aware of the situation when we purchased the tickets. Since this is a highly pubicized airline issue an insurer will likely not want to touch it at this stage.

@Carrie Livingston : Thanks for pointing me toMichelle's article. I read it yesterday and it is quite encouraging. At this point my visa card issuer seems to have some different views on the subject but I will pursue it in terms of the article if necessary.
 
Sep 19, 2015
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#7
If you had bought the tickets on Delta.com or KLM.com they would have likely moved you to another flight.

Buying from jet may be problematic as KLM may not accept the Jet ticket.

The situation with jet is dire— running out of fuel, people not paid, pilots threatening to walk out on April 14 if not paid (no pay since December). The state bank of India has taken an active role and more will be known later this month.

I am not sure buying travel insurance now would work as it is like trying to buy flood insurance when the water is at the door.

As for chargeback I think you need to wait until the airline stops functioning.
 

Carrie Livingston

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Jan 6, 2015
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#8
I would agree with Christina that you cannot purchase insurance for this at this point. If it had been purchased when the tickets were purchased it may have been covered.
 
Likes: agnostic

Neil Maley

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#9
This is a perfect case for purchasing a third-party insurance policy. There are many that will cover the financial default of a travel provider.
However for coverage for bankruptcy protection you usually have to buy the policy within a certain time frame of making your deposit, just as you need to with pre-exisiting medical conditions. It is most likely too late to purchase a policy that covers bankruptcy protection , especially if the airline is already on the travel insurance list of companies not covered. It is probably too late.

There we already warnings about the financial problems of this airline when you bought the tickets. There were warnings from as far back as August of last year.
 
Likes: ShivB
Apr 3, 2019
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#10
If you had bought the tickets on Delta.com or KLM.com they would have likely moved you to another flight.

Buying from jet may be problematic as KLM may not accept the Jet ticket.

The situation with jet is dire— running out of fuel, people not paid, pilots threatening to walk out on April 14 if not paid (no pay since December). The state bank of India has taken an active role and more will be known later this month.

I am not sure buying travel insurance now would work as it is like trying to buy flood insurance when the water is at the door.

As for chargeback I think you need to wait until the airline stops functioning.
Thanks Christina, appreciate the input. I agree the situation is extremely dire. Things will be a lot clearer after April 9th when they will know if any new investor is stepping in or not. Also agree about the insurance. Besides, most insurers require purchase of the policy within 14 to 21 days of booking the travel. I'm about 4 months out.
 
Likes: agnostic
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#13
However for coverage for bankruptcy protection you usually have to buy the policy within a certain time frame of making your deposit, just as you need to with pre-exisiting medical conditions. It is most likely too late to purchase a policy that covers bankruptcy protection , especially if the airline is already on the travel insurance list of companies not covered. It is probably too late.

There we already warnings about the financial problems of this airline when you bought the tickets. There were warnings from as far back as August of last year.
Thanks Neil. Agree completely on the insurance.

Also agree there were early warning signs about this airline when we bought the tickets. Unfortunately we were not aware of this at the time and only recent reports have indicated this fact to us. Being an India based airline not much coverage of this was seen in the US. Had we been aware at the time we would have steered clear. A family member flew Jet on the same routing in late 2018 and nothing at that time prompted us about financial issues either. We looked for fares online and purchased without realizing these issues. With this experience and other recent bankruptcies, it now seems very prudent to look into financial stability before purchasing.

Appreciate your input.
 
Likes: agnostic
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#14
ShivB I think the situation with the airline will be much clearer in the next few weeks -- at least by the end of the month as the State Bank of India is involved.
 
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Likes: VoR61
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#16
I think the company is already in financial default as leased airplanes have been repossessed -- which means a reduction of flights -- it is a mess. Hopefully the OP will find out soon enough this month if there will be investment to keep the airline afloat.
So, the lenders (State Bank of India and others) have invited Expressions of Interest from business groups interested in taking over the airline and keeping it afloat. The bidding process opens tomorrow 4/6 and closes Tuesday 4/9. Depending on that outcome its anyone's guess - hopefully it will be a positive resolution.
 

Neil Maley

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#17
I'll keep my fingers crossed for you but as of now all you can do is wait and see unless you want to spend money for new tickets elsewhere in case they go out. You can go directly to an airline and book refundable tickets that you can cancel as the fly date gets closer if they are still operating.

As far as a chargeback, if the airline goes under you can argue with your credit card company and push them into getting a refund of the tickets.
 
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#18
I'll keep my fingers crossed for you but as of now all you can do is wait and see unless you want to spend money for new tickets elsewhere in case they go out. You can go directly to an airline and book refundable tickets that you can cancel as the fly date gets closer if they are still operating.

As far as a chargeback, if the airline goes under you can argue with your credit card company and push them into getting a refund of the tickets.
Thanks very much. Hopefully a clearer picture will emerge next week. Fares are now through the roof for our planned travel period so we probably can't afford refundable tickets during that time while having funds locked into the current tickets. Worst case scenario if this situation doesn't end well we might have to cancel our travel plans and try to work out a resolution with the card company.
 
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#20
Yes, I've been tracking the developments regularly. As bad as things look right now there's the possibility of a turn around since Etihad has formally expressed interest in taking over the airline. Still remains to be seen how this will unfold.