Budget airline Cobalt cancels all flights - what you need to know - MSE News

Former_MSE_Callum · 18 October 2018 at 8:25AM

Budget airline Cobalt has announced it is cancelling all its flights and indefinitely suspending operations...

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'Budget airline Cobalt cancels all flights - what you need to know'

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antidoto · 18 October 2018 at 12:08PM

i booked my xmas flights with Cobalt via Edreams.co.uk
costed 99GBP (94 for cobalt and 5 for edreams fee)
the contract is directly with the airline

Edreams charged their fee of 5 GBP on my credit card on the day of purchase (5th OCT) however Cobalt still has not charged their part.

Is it fair to assume that Cobalt cannot charge me with the 94 GBP now they are off business? Or the administrators can decide to charge me (for a service they know the company cannot offer??)

Regards
Antidoto

Alan_Bowen · 18 October 2018 at 2:36PM

In theory, the money should have already been collected so the administrators may try and debit your card. In practice, I suspect they will not and you should advise your card issuer to stop payment if there is an attempt to collect. You will, of course, find replacement flights have gone through the roof, fares for next week are over £850 on BA and Easyjet have no seats at all until Tuesday, so book your new flights now

richsulzmann · 19 October 2018 at 10:41PM

Currently stranded in Cyprus, Cypriot government is doing what they can but communication is thin and no time frames being given for flights back to the UK. It sounds like they are just booking people onto existing flights where seats are available. We are due to fly Sunday.

Furthermore, I had a query about travel insurance and financial failure. I have a policy with Sainsbury's Bank and I am covered for financial failure. I was considering buying one-way tickets home on Sunday but wanted it confirmed that this would be reimbursed before doing so. When I speak to claims they say it's nothing to do with them and I am put through to another company who deal specifically with financial failure for Sainsbury travel insurance. They say that Colbalt haven't officially gone bust, ie financially failed and are unable to assist until they are told that Colbalt are. They appear to be in administration, so presumably this isn't covered? Leads me to ask the questions a) how would I get home if Cypriot government weren't doing anything and b) what's the point in this policy if it doesn't cover administration, which could go on for weeks or months.

Really, I need to be back in the UK by Monday so with no time frames being given you can see my predicament. The lack of communication is also very frustrating.

Alan_Bowen · 21 October 2018 at 5:59PM

The cover should begin as soon as an airline stops flying and Cobalt have clearly passed that test. Unfortunately, there is at least one insurer who has a reputation for finding reasons not to provide cover, you should advise them that if they do not step in and help you will buy your own tickets home and if necessary sue them for the full cost of doing so.

In practical terms the Cypriot government is supposed to be paying for flights in the next 7 days as they want to protect their tourism industry from damaging publicity and you should check with your hotel to see if they have received advice from the tourist board, they were certainly talking to two Cypriot travel agencies earlier in the week to get help. I think the suggestion was that you find the cheapest economy flights and send the bill to the agencies.

If you paid for the flights with a credit card you should have protection from the card issuer under the Consumer Credit Act, if you paid the airline directly with a debit card you should be protected for the cost of the return portion of the flight but not the full cost of an alternative which will be a great deal more,

ClaireGordon · 26 October 2018 at 4:43PM

We tried the numbers given by the ministry of transport but the numbers were either engaged or just rang or rang and someone hung up. So I had to buy four single tickets home at £660. Now the ministry say they won’t refund our costs as we didn’t buy tickets via the agency. We had no choice so its insincere to say they will help with costs only if we use an agency that is incommunicado.

Alan_Bowen · 27 October 2018 at 5:10PM

In that case, make a claim against the card issuer for the card you used to buy the flights in the first place. The problem, of course, was the fact that there were 18000 people telephoning all at the same time and I suspect only around 10 people answering the phones. It might have been easier to go into their offices but that is all water under the bridge now.

In law, the Cypriot government had no legal obligation to pay anything so I would simply contact your card issuer and take it from there.

ClaireGordon · 27 October 2018 at 5:35PM

Thanks yes trying that too although we paid with visa debit so not guaranteed. If successful that won’t cover entire additional expense but better than nothing. Yes in hindsight I should have gone to the offices!!!

Revan80 · 17 December 2018 at 7:51PM

Alan_Bowen wrote: »

In that case, make a claim against the card issuer for the card you used to buy the flights in the first place. The problem, of course, was the fact that there were 18000 people telephoning all at the same time and I suspect only around 10 people answering the phones. It might have been easier to go into their offices but that is all water under the bridge now.

In law, the Cypriot government had no legal obligation to pay anything so I would simply contact your card issuer and take it from there.

Hi Alan

Thanks for your reply - can you potentially offer some advice as you seem to know your onions!

We turned up to the airport on the 18th to find that the flight was not operating (CO326).

The ministry then posted that we should buy tickets to get home. Bearing in mind, it was my wife and my 2yr old, and we had to get back to the UK for work - seeing that the Ministry suggested they would cover costs we thought "why not?". The cost of us being late back to the UK was probably worth similar amounts to the price we paid. Booked activities over the weekend, and my day rate at work (owing to having to take unpaid leave) would have amounted to similar amounts - so it was better to get home at all costs. But I do regret it somewhat.

Turns out that the ministry have no intentions of refunding the costs of the tickets. I'm now over £2600 short of money.

I've already got my original flight refunded via section 75 of the credit consumer act - but... I can't get £2600 back that way as the service was provided.

My insurance company won't refund me as the airline has not gone into liquidity.

I've contacted the CAA, all the relevant operators, written to the Embassy in London and in Cyprus.

I'm running out of a) patience b) options c) knowledge d) money before Christmas.

Any advice or suggestions would be wonderful.

Thank you.

ClaireGordon · 17 December 2018 at 9:31PM

Very frustrating. I think sadly they have no intention of paying. I received a reply from the ministry of transport (they have a website and lots of emails so worth a try) saying that they wouldn’t pay as we didn’t go via their agent (near impossible to get through and when I did the operator hung up on me). Duplicitous as I read it as you did but read between the lines and they have covered themselves for not paying. They are lucky that Cobalt is so little known and the damage to tourism will be nil.

Alan_Bowen · 18 December 2018 at 10:27AM

Here's Alan, with his onions intact!

You suggest you paid £2600 for three single tickets back to the UK, is that correct, as although flight prices rose, nearly £900 each seems excessive, to say the least.

Cobalt was not a UK based airline and, assuming you booked online directly with the airline, it has nothing whatsoever to do with the CAA. If on the other hand you booked through a UK agent and received an ATOL Certificate, you may have a claim but I assume that is not the case.

We then come back to what type of card you used to buy the tickets. If it was a credit card section 75 entitled you to claim the consequential losses, in other words, the cost of getting home, not just the original payment, although you will have to find a way to justify the very high cost of doing so. If you used a debit card, then s.75 does not apply and the most you can claim is the amount charged to the card in the first place, through a voluntary system called chargeback

Budget airline Cobalt cancels all flights - what you need to know - MSE News

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