Money Moral Dilemma: Should I claim for a cancelled flight when airlines are struggling?

MSE_Sarah

This week's MoneySaver who wants advice asks...

A recent flight back from an overseas holiday was cancelled due to coronavirus, and I was put on one much later. While technically I'm eligible for compensation and food costs, I was safe and staying with family so I didn't have any major extra expenses - so should I claim at a time when airlines are struggling, furloughing staff etc?

Unfortunately the MSE team can't always answer money moral dilemma questions as contributions are often emailed in or suggested in person. They are intended to be a point of debate and discussed at face value.

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Mrsn

Honestly right now I wouldn’t, you’ve said yourself that you didn’t incur any major expenses. I personally would just be happy that I was home safe and well given the current situation.

gloriouslyhappy

If the airline said payment was contingent on production of receipts for allowable expenses, you wouldn't have any to show them, given you stayed with family. So it's up to your conscience to decide, mine would tell me not to claim in your and these circumstances.  

7Phil

I would put in a claim to the basic compensation that I am entitled to under whatever law that the trip and the airline fall under.
If the trip resulted in a delay above a certain timescale then standard compensations apply. The EU laws provide compensation in the form of a uniform cash payment to cover some costs for accommodation and making other arrangements. Shouldn't matter what costs the passenger actually incurred. Staying with friends for free is not relevant when it comes to a standard compensation.

However, there are many exceptions that allow airlines to refuse compensation. These usually apply if the delay was out of their control. If an airport is shut down or a government regulates to stop flights then an airline won't be liable for paying compensation as those reasons are outside of their control. The passenger will then fall back on any travel insurance protection they might have.

It is still worth pursuing compensation - it is usually just a matter filling in a form on the airline's website. Passenger rights are not diminished due to this being a global pandemic nor do they because the passenger feels morally conflicted. However, as mentioned above, there may be valid exceptions that allow the airline to refuse.

suziehop

Personally I wouldn't be putting a claim in. I think when times are this hard globally for everyone and companies are losing their businesses, we've all got to compromise. Ultimately if we all claimed what we are 'entitled to',  it increases the airline's chances of going under.  The long term effect will be detrimental to consumers, whichever way we look at it....less availability, more expensive etc etc. I am personally taking a loss on a holiday in September, but I just want to come out of this alive, the sooner the better.
The ultimate choice is down to the individual but rather than people claiming for a couple of quid, we could do with supporting these airlines that take us to the destinations we love to spend our holidays at. 
Just my opinion, not wanting to offend or criticise anybody else.

iwmoz

MSE_Sarah said:

This week's MoneySaver who wants advice asks...

A recent flight back from an overseas holiday was cancelled due to coronavirus, and I was put on one much later. While technically I'm eligible for compensation and food costs, I was safe and staying with family so I didn't have any major extra expenses - so should I claim at a time when airlines are struggling, furloughing staff etc?

Unfortunately the MSE team can't always answer money moral dilemma questions as contributions are often emailed in or suggested in person. They are intended to be a point of debate and discussed at face value.

😲 If you haven’t already, join the forum to reply.

🙄 Got a Money Moral Dilemma of your own? Suggest an MMD.

MOST DEFINATELY I would claim; it was a business transaction and if I can claim my costs back, I will. I couldn't care less who is struggling and why. If the airlines go under, then that is not my concern. Just look at one airline operator who is sat on a sunny island with billions in the bank.

Alexsas

let me answer with a story. 

we had tickets for Easter, and then things started to close in Europe, but FCO has not issued the advice yet. 

What did BOTH of our airlines say when we wanted to cancel when it was clear the holiday was not on (resorts closed and we’d have been spreaders by going)? “Normal terms and conditions apply”, i.e. feel free to cancel but we’ll keep you cash. 

For me claiming is not even a question if you are legally entitled. 

Alexw1_2

You’re entitled to claim - that’s part of the insurance cover that the airlines will / should have ... happy to take the premiums, should be happy to pay out - it’s part of the risk that they charge you for in the prices & it’s their part of the risk that they take on.
I think it also depends on which flight operator it’s with. Some have gone the extra mile to help customers by allowing free flight changes, others have charged people to do so, right up until the last minute, while also stalling on refunds & selling holidays & flights when they couldn’t be used. 

If I’d been charged to change my flight because me or my partner were working for the NHS / in care services (which I’ve seen on some tweets), or because I’d tried to change it to avoid cancelling due to lockdown measures, then yes, I’d claim ... 

bibster7

Hi Phil,
Our holiday to Italy was cancelled at the beginning of march. On the 12th we were told a cheque would be sent out as we had switched bank accounts... No problem with this. On the 19th we spoke to Magdalena who told us the cheque had been sent on the 16th, on the 21st spoke to Dwayne who also said had been sent on the 16th, spoke George on the 24th who told us his supervisor had said we should just "sit it out!" Spoke to Ryan on 26th who said no cheque had ever been sent. We have tried phoning and emailing numerous times since with no reply, now their phones are temporary shut down.
The holiday is down as cancelled but who knows when we will get our money back. Its all made worse because they are using the situation we are all in now as the reason for us not having our money back yet but our holiday was cancelled weeks before lock down and working from home and should have been done and dusted before it all started.

Please can you advise on what steps we can take next Ian and Donna Bibby.

P1

I understand you are consumer finance advisers and a bloody good ones at that.  However, you need to do something to teach people the basics of economics.  There are two drivers for someone to asked this question in this thread.  A lack of economic education and/or stupidity.  With most people it is the former of the two and thats why I really think some of you at money saving expert could help here. Most people assume economics is boring and therefore can't be bothered to read about about it and find decent info, therefore never learning.  How can you learn something you're not looking at? 

It would be great if you set something up to explain money, its history and how it has dramatically changed over time.   Most people don't know what money is, yet work for it for somewhere between 10 - 60hrs a week!  Getting into all this and building some investments up has saved me right now so I can weather my 0 pay due to my !!!!!! refusing to furlough me boss.  

I cannot put links on here, but google WFThappenedin1971.  Interesting stuff.  

Most airlines have been the biggest buyer of their own stock since 2008 through stock buy backs.  The share price goes up, hopefully to the share price target or above. The CEO and board members get a large bonus for that behavior.  Dividends paid etc! They then rinse and repeat as they have been for over a decade.   If they had strengthened their balance sheet during the goods and saved for a rainy day they wouldn't be in so much trouble now.  But they wanted those bonuses.  

TAKE THE REFUND FROM THE !!!!!! AIRLINE!!!!!!!!!  THEN READ ABOUT THE CANTILLION EFFECT!!!!!!!!!  MOST AIRLINES WILL BE BAILED OUT BY THE TAX PAYER ANYWAY!!!!!  WE WILL ALL BE GIVING THEM MONEY.  DON'T GIVE MORE!!!!!  Christ! 

If you really want to help someone, take the refund from the airline.  When it comes in to your bank walk to the cash machine.  Withdraw and give it to someone who needs it. Not a !!!!!! airline Jesus!  Sorry. Or you could buy an once of gold for the younger generation in the family off the royal mint website (if they have any in stock)? 

Read about how many high up fortune 500 company staff started retiring over the last year to 18 months.  It was obvious to them an economic crises was coming and a lot have bugged out.  Corona was the pin that popped the everything bubble.  Simultaneously a record amount of boomers are about to retire around the Western world.  They were promised more than there is. Their assets will be at very depressed asset values when they retire, yet they will still have to sell them to fund their pensions.  Someone will be buying their stock and property over the next 5 to 10 years for cheap.  They will never earn the money back as a lot will be over 65 already.  Its very unfair.  Pensions buy bonds.   The more riskier bones have a better reward, which in the low interest rate environment of the last 10 years has meant they have had to chase risk just to get a return.  That was not the case 20 years ago!  There is a problem though.  A lot of the bonds are BBB rated.  This is the lowest level of "investment grade" bonds.  If they get downgraded one level they will become CCC or junk bonds.  Again, the pension funds can only legally hold investment grade bonds, meaning again they will become forced sellers at a loss......again.  A lot of large companies are fighting for BBB rating!  I think Ford recently lost its investment grade status. Could be wrong.  

The poster seems like a good person.  Just a misguided one in my view.  Its a classic example of a pleb (I am one too) getting bent over and !!!!!! and not understanding how or why.  Its very frustrating as a fellow pleb to watch.

ajtrader100

Absolutely I would. The airlines are happy to squeeze every penny out of you and sting you with extra charges whenever they get the opportunity regardless of what financial situation you might find yourself in at that time, “what’s good for the goose....”