Norwegian long haul cancellation - cashpoint exchange

Alan_Bowen

There are thousands in a similar situation, including a well-known ex travel journalist who has £2000 worth of vouchers. Unless the airline gets a bailout from the Norwegian government again, and they were refused one three months ago but circumstances have changed, they won't have the money to refund but once the UK company fails, they technically had dozens of companies based in numerous countries for 'various' reasons, then a claim under section 75 of the Consumer Credit Act could be successful

Avamilla

Same here. Had a flight to Brazil cancelled in March and got points for it. Then booked a flight to NY for August 2021 (paid some difference by credit card) and now got an email saying that it has been cancelled and they won’t do long haul flights anymore! They refunded my extra £75 on my card and again almost 2k in points - which are now useless as they only fly to Scandinavia now from Gatwick! I’m simply can’t believe it!  How can this be legal? 

Avamilla

Btw, I just wrote to CAA Norway to raise awareness on the matter. It might be a waste of time, but it took me 2 min. If anyone wants to write too, here is the email: postmottak@caa.no 

SamTimBen

Thanks Avamilla, I'll email them this evening - just wondering how much detail you put in your email?  

Avamilla

Not much. Just urged them to take a look at this issue in the name of the hundreds of people who are now stuck with Cashpoints while Norwegian is not able to provide the service anymore (long hauls). Fingers crossed, I had to do something 🤷‍♀️ They also have a Twitter account btw! 

Alan_Bowen

The Norwegian CAA are usually very effective, a week ago they ordered the airline to complete outstanding refunds within 7 days. Of course, the airline, and possibly the CAA will consider cash points to be a refund and consider the matter closed, but at least they will consider the issue

Avamilla

In my opinion, the points are "acceptable" as long as they give the customer the choice to have similar flights to the ones that were cancelled.But now they are only flying to Scandinavia from Gatwick (Norway, Sweden, Finland and Denmark). This is pretty much choosing where we need to spend the points! If I could even fly to Spain...  

Avamilla

Hello, an update: Just got a reply from CAA Norway' Senior Legal Adviser:

"I am sorry to hear about your cash points, but I am afraid there is not much the regulators can do. Norwegian Airlines is as you might know in an examinership both in Ireland and in Norway. This means that the airlines for every practical means is bankrupt and that the creditors loose their money. In an examinership an examiner appointed by the court tries to find a solution that is better for the creditors and makes it possible for the airline to continue. Passengers with refund claims are creditors, who will be treated like the other creditors (banks, leasing companies etc.). Cash points are also a kind of credit. What will happen to the creditors, also those with cash points claims, depends on what happens in the examinership. But it is correct that if Norwegian Airlines survives, it will be without the long haul operations. So even if the cash points will be valid after the examinership, you can’t use them like before. If the cash points are valid, it will be for services in Scandinavia and some routes within Europe."

Not much hope here   If the airline is bankrupt, can't we try to claim under section 75 of the Consumer Credit Act?

Alan_Bowen

There is a court hearing shortly in Ireland where their non-Norwegian companies were based but what is 'practically bankrupt' may not be sufficient for banks to payout. I suspect you will need the UK company which was presumably the company you contracted with to move into administration before the banks will kick in and accept claims and just to muddy the water the Norwegian government has today offered more cash but subject to certain terms. I suspect you may have to wait a few weeks for everything to crystalise but providing people used credit and not debit cards, there may well be valid s.75 claims ahead

BlackmanAndRobin

Hi all, I joined this forum to find some sorta help regarding my situation with Norwegian Airlines. 

Likes others, I booked tickets with my CCard to JFK- USA in Jan 2020 to fly out in July 2020 for a family of 5 (£2000), as you aware the pandemic hit the travel industry and all flights were grounded and I was  offered cash points. I waited two weeks and withhnnonnews of credit refund I took the ‘bait’ of extra 20% cash points so I can I can postpone my family holiday for another year.  Now I hear their decision to cancel all long haul flights to USA for the future I am stuck with a whole of old cash points I can’t spend as I have no intention to taking to Scandinavia:( . I have reported it to my CC Barclaycard so let’s see if they can help as I am a total newbie to travel rights & legislation.