Norwegian long haul cancellation - cashpoint exchange

DCFC79

All you newcomers to the thread, have you emailed Simon Calder the travel expert ?

The more of you who email it might increase the chances of something being done.

Lillibett_2020

I joined MSE specifically to join this thread. I am in the same boat. I purchased a single flight to America from Gatwick because I need to go there for work. when my first flight (for August) was cancelled during the first lockdown (around May or June) I accepted the cashpoint member 'reward' offer as I was still planning to get to America for my job and I actually thought it was helping the airline to rebook. My second flight for early January was cancelled by Air Norwegian. I received the small difference in price I paid (the second flight cost a bit more) in cash, I received the rest in cashpoints which are now useless for me. I need a single flight to America for work. So I need to buy another flight from someone else. And I will be in America (when this becomes possible in future) for a year. So I would not be able to take short haul trips within Europe even if I wanted to. I don't see how this can be deemed fair practice - even if Air Norwegian say 'it is their policy' an unfair policy can be disputed with the Ombudsman. I think it is deeply unethical given that a long haul service is no longer in operation the service as originally described, sold, and purchased no longer exists! And now to say there is a limit on point expenditure? I think perhaps one way forward with this is to raise it as an unethical policy with the Ombudsman. We were directly marketed the cash points offer repeatedly, a pretty aggressive marketing strategy, and are now locked into a 'loyalty reward' scheme for a service that no longer exists and for points that the airline can delimit expenditure. How is this ethical - it feels like being robbed to me. I will try with my credit card (I have already tried both directly and indirectly through Resolver to get a refund from the airline) and if that fails I will move to the Ombudsman. Are there a number of us willing to get together and form a pressure group? How many people are affected like this I wonder? Thanks for sharing advice everyone I appreciate it!

Westin

Which Ombudsman are you referring to?

Alan_Bowen

As Westin has hinted, there is no Travel Ombudsman, Norwegian is not a UK based business, the UK businesses have ceased to trade and the rest of the airline is hanging by a thread. You should not expect any change in the airline's attitude, the Norwegian CAA has already made it clear, since they don't want the airline to fail, that cashpoints are an acceptable alternative, so your only route ahead is a section 75 claim against your card issuer on the basis that the offer you accepted is no longer on offer since there are no long haul flights to anywhere. Frankly, your chance of success would be greater if the airline stopped flying altogether but it seems to have more lives than our cats! The lesson to be learned for the future, never accept any alternative to cash from an airline since there is no legal protection for vouchers

bagand96

All good information from @Alan_Bowen and @Westin as usual.

One thought to cross my mind, is the complex way Norwegian was set up - it was actually one brand with 4 or 5 actual airlines (or AOC's - Air Operators Certificate).  This is a long shot, but could this complex structure give people an argument with their banks for a Section 75 claim?

I only say this as the long haul operation out of the UK was operated mainly by Norwegian Air UK  and Norwegian Air International (Ireland).  Although fully integrated with the Norwegian group, these are separate AOC's.  With Norwegian ceasing all long haul operations I believe Norwegian Air UK is being wound up?  Not sure about Norwegian Air International as they also operate 737s.

There's two rather large problems that might counter this argument:

1) Regardless of which Norwegian AOC operated the flight, I expect the contract and transaction on the website was conducted with Norwegian Air Shuttle, the parent company who will continue to trade.
2) Norwegian may actually keep the UK AOC active 

I'm almost talking myself out of the argument I was trying to make, but if Norwegian Air UK is wound up, and your Norwegian confirmation stated flight was "Operated by Norwegian Air UK" it might be worth a try.

IvanTheTerrible

We are also in the same position   booked 3 tickets from London to New York and from LA back to London.
Accepted CashPoints option when the flight was cancelled back in 2020, now all their long-haul flights permanently suspended and the use of CashPoints is also paused. I have a strong feeling that we going to say bye-bye to £1500 

Alan_Bowen

Ivan if you used a credit card to book, make a claim under section 75. As part of the Examinership proceedings in Dublin to restructure, they have confirmed in writing that there are 34000 outstanding refunds which they cannot and will not be paying. This has been widely reported in the press so your card company should look favourably upon a claim.

IvanTheTerrible

Alan_Bowen said:

they have confirmed in writing that there are 34000 outstanding refunds which they cannot and will not be paying

Hey Alan, could you point me to their written response please? Can't find it on norwegianDOTcom. 

Alan_Bowen

Needless to say, they are not advertising the fact but it appears in their submissions to court. Here are the details:

Struggling airline Norwegian has submitted its final restructuring plan to creditors. It contains bad news for many of the airline's international customers.

Anyone still waiting for a refund from troubled airline Norwegian looks to be out of luck. As with all airlines, Norwegian has been hit hard by the pandemic, resulting in thousands of cancelled flights. The airline is also fighting for its future in the courts. According to the final financial restructuring plan presented by the company today, remaining unsecured creditors will not be compensated in full. This includes approximately 34,000 customers yet to receive a full refund. Norwegian is in the middle of a major restructuring process, overseen both in Norway and by the Irish courts. The goal of the process is to reach an agreement with creditors to ensure sustainable future operations.

During the process, Norwegian's operations remain extremely limited. The airline is operating just a handful of domestic flights in Norway, while the frequent flyer programme has been placed on hold.

A new rescue plan

Last week, Norwegian was given the go-ahead by the Irish court to continue with the rescue plan. A financial restructuring plan has now been presented to the company's creditors and shareholders. It must be accepted in order for the airline to continue the restructuring process and raise new capital during April.

Norwegian CEO Jacob Schram described the negotiations as “good but demanding” and believes the plan is a “good solution” for the company's creditors and owners. That may be true, but it is not good for many of the airline's former customers.

Norwegian claims no other option

The company stated that around 98% of customers claiming a refund from bookings made directly with the airline before the reconstruction process began have been refunded.

“We have wanted to refund the last customers completely, and we regret that it will not be possible,” said Norwegian CFO Geir Karlsen. The reason, according to Norwegian, is the legislation relating to the restructuring process. Norwegian has to treat these customers in the same way as other unsecured creditors.

The airline has said that 99.6% of customers in Norway have received a refund, which suggests that many of those who will miss out live in other countries.

The next steps for Norwegian

Norwegian is scheduled to meet with its creditors next week to discuss the plan. If approved, the plan must also be approved by an Irish judge. Company bosses hope to complete the restructuring process, including sourcing new capital, by May.

Should the company make it through the process, the future airline will look very different. The airline has already announced the end of its long-haul service.

In future, Norwegian will focus on domestic routes in Norway and selected short-haul routes in Scandinavia and Europe.

 

Shoedog

I have interesting news.....

Just like others on here, I booked flights to USA for summer 2020, then when the flights were cancelled, I accepted cashpoints. In November, I used the points to rebook for summer 2021, then all long haul flights were cancelled in Jan.

My situation is slightly complicated in that I paid for the outbound flight on a Santander DEBIT Card, but paid for the return flights on a Barclaycard CREDIT Card.

I recently approached Barclaycard, sent them all the supporting documents, and they have REFUNDED THE FULL AMOUNT. Santander are dragging their heels, and have warned me not to be optimistic (because it was a debit card ather than credit card), but they have logged the details and are sending a claim form to me to complete. So there is hope. Especially if you used a credit card. Hope this helps.