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Passengers to Lose Compensation Due to Monarch’s Shutdown

Posted on November, 28 2017 by Blueway Limited

Around 50,000 of Monarch’s passengers could end up losing the compensation due to them as a result of the carrier’s recent collapse. This also includes many of the passengers who have been waiting for their lost luggage refunds since 2016.

According to statistics published by Money Mail, passengers who flew on 326 of the carrier’s flights deserve compensation for delays and lost luggage.

However, with the carrier now in administration, the chances of these passengers receiving their due compensation are slim to none. Though some could have already received compensation, reports indicate that those who travelled with Monarch in 2017 will likely fail to receive compensation as the carrier is left without funds.

Insurance?

Though insurance is often an option in such cases, most policies do not cover collapse or failure of a company. There is also the problem of customer details being stuck within Monarch’s systems as the claims process can take weeks to process.

KPMG, which has been hired as the administrator to see through Monarch’s closure, has stated that passengers will have to resubmit their claims. This applies both, passengers who faced delays and those claiming refunds for lost luggage.

As mentioned earlier, a little over 50,000 passengers could be in line for compensation, which is estimated to be worth around 17.7 million GBP in total.

Through EU’s compensation rules allow for claims up to 600 Euros, the actual figure paid to the passenger is determined by the length of the delay and the flight distance. In the case of cancellations, it depends on whether the passenger was notified and when, apart from the actual length of the journey.

However, compensations aren’t applicable if the delay was caused due to extraordinary circumstances that are out of the control of the airline.

Lost Trip Compensation Possible

Over 300,000 flyers who had booked trips with Monarch and are now forced to cancel will be refunded within a month. According to the CAA, customers who booked an Atol holiday/flight are protected and will soon receive a claim form to apply for their compensation.

The CAA has even recruited handlers to ensure that the forms are processed on time and that passengers are refunded within the promised timeframe. However, delays are expected as more information might be required in some cases.

Customers who used other operators will have to contact their respective operators for details. They can expect their money to be refunded or be offered another holiday/flight.

Customers who paid using PayPal will be able to claim a refund under the payment giant’s Buyer Protection Policy.

All this also includes canceled flights since the carrier isn’t operational anymore.

Customer must typically apply for claims with PayPal 2 months from the original date of payment. However, PayPal has revoked the condition temporarily for Monarch passengers.

The figures were arrived at by calculating the carrier’s average loading figures and the average compensation paid in general to flyers.

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