Yet another airline calls it quits

Eos Airlines, a Purchase, N.Y.-based carrier that specialized in “premium class” service from New York to London filed for Chapter 11 bankruptcy on April 26, announcing that it would cease operations the following day.

The company posted this message to consumers on its Web site, including advice for ticketholders.

For general advice on what to do when an airline goes bankrupt (an unfortunate trend in recent weeks), please see this earlier blog post.

What to do if you have tickets on Aloha, ATA, Skybus, Skyway, or Champion Air

As promised in my earlier blog post, here are more specifics about the four airlines that recently stopped flying and one that has announced plans to do so next month. 

Aloha Airlines
The airline's site has FAQs for customers. Although Aloha's president and CEO cited "unfair competition" as what drove the company out of business, its competitors might provide your best hope:

• United Airlines and Aloha operated a code share agreement, a pact that allows carriers to sell seats for each other. United says it will rebook customers flying on a United ticket for no additional charge, where space is available; customers traveling on Aloha tickets are being offered a discounted one-way fare through the end of April. For more details, click here.
• Former rival Hawaiian Airlines is adding 6,000 seats to its daily inter-island schedule to help fill the void. The carrier's site provides these details on its plans to accommodate Aloha passengers. Aloha ticket holders can also call 877-892-8896 to hear recorded information.
• Mesa Airlines—which operates as go! within Hawaii—increased service from an average of 54 to 94 daily flights.
  

ATA
This airline says it is unable to offer refunds to those who paid by cash or check (no big surprise there) and suggests passengers contact other carriers. But it also says: "Please note, however, that other U.S. scheduled airlines are not obligated to honor ATA tickets."

ATA also sold tickets through a code share agreement with Southwest Airlines. Southwest plans to rebook customers who bought Southwest tickets but were due to travel on ATA by rebooking them on "a new itinerary closest to their previous travel plans" or offering a full refund on any unused portion of tickets. Southwest reservations agents are in the process of contacting passengers, but a toll-free number is available as well: 800-308-5037.

Skybus
At this writing, a brief post on the airline’s Web site advises passengers to contact their credit-card companies for refunds, adding that "More information for customers and others will be made available on the Skybus web site as it becomes available."

More bad news: AIG Travel Guard, which sold travel insurance directly through the Skybus site, says policies purchased directly through the Skybus site don't cover financial default. Further details are available on Travel Guard's site.

Skyway
As previously announced in January, Midwest Airlines "transitioned" all its Midwest Connect flights from Skyway to another commuter carrier, SkyWest Airlines of St. George, Utah. SkyWest is now serving those shorter routes with 50-seat Canadair regional jets.

Champion Air
This a rare case of an airline pre-announcing its shutdown. The details of the May 31 grounding are available on Champion Air's site. The key provision is this: "Champion will fulfill all outstanding service commitments and will remain fully in compliance with all regulatory, operational and labor contract requirements. The company has adequate funds to continue operations and to settle all outstanding financial obligations."

However, consumers who booked Champion flights through Worry Free Vacations, a division of MLT Vacations, a Northwest Airlines Corp. subsidiary, would be well-advised to contact the vacation packager to confirm their plans and ease any worries.—William J. McGee

Grounded by a bankrupt airline? Here’s what to do

Last week, three U.S. airlines announced immediate shutdowns, a fourth stopped flying as it had previously announced, and a fifth said it would shut down next month.

• Aloha Airlines, one of the two largest carriers operating within Hawaii, stopped flying after March 31.
• ATA Airlines, an Indianapolis-based major carrier, shut down on April 3.
• Skybus Airlines, a low-fare carrier based in Columbus, Ohio, ceased flight operations on April 5.
• Skyway Airlines, a commuter partner of Milwaukee-based Midwest Airlines, ceased flight operations on April 5 (as it had announced in January).
• Champion Air, a full-service charter operator based in Bloomington, Minn., announced on March 31 that it would cease flight operations on May 31.

In addition to these shutdowns, on April 10 Frontier Airlines filed for Chapter 11 bankruptcy reorganization, citing, among other industry issues, the "unprecedented cost of fuel." Although the Denver-based carrier said it intends to continue normal operations through the reorganization process, passengers should be cautious about booking Frontier. The airline's Web site offers further details.

What should you do if you have a ticket on one of these airlines (or the next one to stop flying)?

Know your rights. Visit the Service Cessations page on the U.S. Department of Transportation's Aviation Consumer Protection Division site. The DOT site has specific updates for ATA, Aloha, and Skybus. As of this writing, there is nothing yet on Skyway or Champion Air.

File a claim with your credit card company. "Customers who paid by credit card and who do not receive substitute transportation can file a claim with their credit card company," the DOT says in its Aloha update. If possible, enclose a photocopy of the ticket, itinerary, or receipt. State that your airline is in bankruptcy and has ceased operations, and that you are requesting a credit pursuant to the Fair Credit Billing Act.

File a claim with the court. The DOT says ticket holders who do not receive alternate transportation or a refund should file this claim form.

In my next blog post I’ll have more detailed information about each carrier.—William J. McGee