How do you view the situation at Aigle Azur?
Anne-Laure Hery - Aigle Azur is a major airline, the second largest in France, with a long history. But since the end of 2018, there have been a number of airline bankruptcies, which is quite worrying. In the case ofAigle AzurFor the time being, this is not a case of bankruptcy but of receivership. Other companies are experiencing difficulties, such as Norwegian or XL Airways. The boss of Lufthansa estimates that there will only be a dozen airlines left in Europe in a few years' time. If the companies are dropping like flies, this is indeed a possibility...
How do you explain this law of series?
Anne-Laure Hery - This may be due to operational incidents. For Norwegian, which is not bankrupt but is experiencing difficulties, theBoeing 737 Max grounded has hit it hard. There's also the price of paraffin, increased competition with very aggressive fares... This is forcing airlines to reduce their margins in order to remain competitive, and the slightest operational hiccup can have consequences. In addition to these factors, there are also sometimes problems of operational management and strategy... In fact, Air France has decided to abolish its own airline Joon, which did not really have a clear positioning in the eyes of the public. new CEO of Air France KLM. Today, as far as Aigle Azur is concerned, my main concern is how passengers will be affected. We receive a lot of messages from passengers who have had their flights cancelled, but they have very little information. And behind these bankruptcies, there are also employees, more than a thousand for Aigle Azur, and this is also worrying at this level.
Do you think the fate of Aigle Azur is sealed?
Anne-Laure Hery - Things are moving very fast. The CEO has just tendered his resignation, and flights are no longer being marketed after 9 September, the deadline for submitting a bid to the buyers. I don't know whether the company has been condemned, but receivership occurs when you can no longer pay your debts. So the company can't meet its liabilities with its cash flow, and is therefore put on stand-by, before a potential liquidation. It is a company with value, thanks in particular to its many slots at Orly. A priori, buyers are therefore interested. I can't comment on the company's future, but things don't look good.
What recourse do travellers have?
Anne-Laure Hery - As it stands, there are passengers are very unlikely to obtain anything in the way of financial compensation from the companyas a result of this adjustment. There may be a possibility of object payment by bank card. An article of the French Banking Code provides for the recovery of sums paid in the event of the beneficiary's liquidation or reorganisation. But this requires very quick action. Some cards also offer a charge back procedure, which allows the consumer to be reimbursed by the bank. It all depends on the type of card and whether or not the insurance is included. As regards a possible refund in the event of flight cancellation by Aigle Azur, this is likely to be extremely complicated. For all transactions prior to the turnaround, it is possible to make a statement of claim within two months to the judicial representative. There may be a solution for customers who have booked a flight as part of a package with a travel agency, which is then obliged to provide the services that have been sold, and therefore to find an alternative solution. This is currently the best case scenario. For direct purchases on the airline's website, or a dry flight via a travel agency, there is little hope. For business travellersIf you have booked flights on your own through an agency, the situation is the same... But it is of course advisable to call the agency responsible for business travel. You never know: the agency may have made contractual arrangements with its partners.
Does the fact that Aigle Azur is a French airline change the situation?
Anne-Laure Hery - No, it doesn't change anything, except that it facilitates communication during proceedings, when it comes to declaring a claim. In the case of Wow Air, the liquidator was in Iceland, so the documents had to be sent to Iceland in English, which was more complicated. But once again, Aigle Azur is not in this situation today.
How can travellers protect themselves against this kind of situation?
Anne-Laure Hery - In the end, there are few ways to protect yourself. Unfortunately, most insurance policies do not cover this type of problem. I would simply advise you to find out about the company's financial health before booking your ticket, and to keep an eye on the carrier's news. In the case of Wow Air, there were warning signs. Even if minor financial worries don't mean the end of the company.
What role can a player like Air Indemnité play in this situation?
Anne-Laure Hery - Unfortunately, we're in much the same position as an ordinary customer in the event of bankruptcy: we can't recover our debts. We offer advice to the passengers concerned.
Airlines are disappearing, but solutions dedicated to passenger compensation are multiplying: why?
Anne-Laure Hery - Even though the European regulation dates back to 2004, and Air Indemnité was one of the forerunners along with other German and American players, there are a lot of structures starting up today. At the same time, many are disappearing, because it's not such a simple business. The processes can be very long, and you have to be able to manage a case from start to finish, and pay certain costs in advance so that you can eventually recover the lump-sum compensation and therefore pay us on a commission basis.
How many of the cases you handle are business travellers?
Anne-Laure Hery - We have agreements with business travel agencies, but we don't precisely measure the split between business and leisure travellers. In the case of business travellers, it should be pointed out that the ticket refund goes to the payer, but the compensation is paid to the passenger, unless the company has set up a different system, which is quite rare. A large majority of travellers are still unaware of their rights, or do not take any steps because they think they will not receive this compensation.
If a flight is cancelled and there are economic consequences for the employee or the company, can the compensation be increased?
Anne-Laure Hery - Article 12 of the European regulation concerns cases of significant damage. Recently, two Romanian employees working in London suffered a flight cancellation that resulted in lost wages and the threat of dismissal. The European Court of Justice ruled that they should receive more than the lump-sum compensation. However, the damage must genuinely justify such a claim, as it involves incurring substantial legal costs. In the case of a business traveller who misses out on a very important contract, the judge will have to be convinced. Is the failure to sign really attributable to the flight cancellation, or were negotiations tight with other competitors? It will have to be proved that the air problem was the real trigger. This can be defended, but it's complicated.
