Air Italy - Getting a Refund
Air Italy has become the next European airline to suffer the impact of fierce competition which cuts the margins to breaking point in the highly pressured aviation industry. Following in the footsteps of Primera Air, Germania, Flybmi, Monarch, Air Berlin and Wow Air, a decision was taken at a meeting in Milan on February 11 to liquidate the company despite the fact that minority shareholder Qatar Airways was prepared of offer a lifeline in the shape of additional investment, a statement was issued by Qatar Airways as follows: "Even with the changing competitive environment and the increasingly difficult market conditions severely impacting the air transport industry, Qatar Airways has continually reaffirmed its commitment, as a minority shareholder, to continue investing in the company," it added: "Qatar Airways was ready once again to play its part in supporting the growth of the airline, but this would only have been possible with the commitment of all shareholders." Air Italy website informs travellers that their tickets will be honoured, up until February 25, by other airlines and outlines the actions needed to receive full refunds.
However, as with many unexpected liquidations, consumers will be familiar with the fact that a defunct business will offer refunds in good faith but there can be difficulties and delays experienced when actually attempting to obtain your money back which can be very challenging. It is not uncommon for loopholes to emerge which leave consumers out of pocket through no fault of their own. The lawyers at Giambrone are extremely familiar with the obstacles frequently placed in the path of consumers attempting to retrieve their money for services promised and paid for but no longer available to them. Often the key to successfully obtaining a refund in such circumstances is being one of the first in the queue; the lawyers in our Italian offices are very experienced and skilled at actively pursuing companies in liquidation as speedily as possible to have the best chance of recovery. Giambrone has an office on-the-spot in Sardinia with a team strong team of litigators and negotiators which makes the firm well placed to assist Air Italy passengers who qualify for a refund.
The aviation industry is under pressure from fluctuating fuel prices predicted to rise and possibility drop back, together with outside factors reducing the numbers of customers. Geo-political factors such as the widely discussed carbon footprint associated with air travel are having an impact. Also, despite assurances from various airlines that the coronavirus poses a minimal impact, the quarantine restrictions alone have affected the global tourist industry. Alitalia is teetering on the brink of disaster saved only by the Italian government’s action to prop up the company whilst the hunt is on for new investors to fund and relaunch the business.
The British government’s interim report on airline insolvency points out that the complex financial structures that are often seen in the aviation industry significantly reduce the ability for an agile response to market developments which threaten the viability of the weaker players. Advice for the future for the tourist and business traveller could see passengers checking the financial stability of their airline before travelling.
If you would like advice or assistance in obtaining a refund from Air Italy please click here