Flight cancelled overseas: what Australians can do

A flight cancelled overseas is a headache, but you have more options than the queue at the airline desk suggests. Speak to the airline first, ask for a written note of the cancellation, and keep every receipt. Your ticket, the country you are in and your travel insurance policy decide what you can claim.

This guide covers the first hour, your rights with the airline, who pays for a hotel, and how to claim on insurance. It is general information, so for a dispute over your own ticket or policy, ask the airline, your insurer or a consumer law adviser.

Sources for this section: Smartraveller (Department of Foreign Affairs and Trade), Travel insurance and Top 10 travel tips.

What to do in the first hour

Do not wait for an announcement. Everyone else on your flight is about to do the same thing, so move early.

1. Ask the airline for a new seat. Go to the desk, or call the airline's number on your booking while you queue. Phone lines often clear faster than the desk.
2. Get the cancellation in writing. Ask for a note or stamp that says the flight was cancelled and why. You will need it for any claim.
3. Keep your receipts. Save every bill for food, hotels, taxis and phone calls.
4. Tell someone at home. Let family know your new plans. Smartraveller advises leaving a copy of your itinerary with someone at home.
5. Call your insurer. Many policies ask you to report a problem early, so check your policy for the insurer's contact number.

If you booked through a travel agent, call them as well. They can often rebook you faster than you can alone.

Sources for this section: Smartraveller, Top 10 travel tips.

Your rights with the airline

Your rights depend on where you are flying from and who flies you. Australia has no single rule that tells airlines what to give you when a flight is cancelled. Your ticket's conditions of carriage set the terms, and they are usually on the airline's website.

Europe is different. Under EU Regulation 261/2004, if your flight leaves an EU airport, or lands in the EU on a European airline, the airline must offer you a choice. You can have a refund within seven days, a flight to your destination as soon as possible, or a flight on a later date you choose.

The same rule says the airline must also give you care while you wait. That means meals and drinks in line with the wait, a hotel if you must stay overnight, the transport to get there, and two free phone calls or emails.

The airline may also owe money. Compensation is set at 250, 400 or 600 euros, depending on the distance. But it does not have to pay if it proves that the cancellation came from extraordinary circumstances it could not avoid. The rule gives bad weather and some strikes as examples. Even then, the airline must still offer rebooking and care.

Sources for this section: European Union, Regulation (EC) No 261/2004.

Who pays for the hotel and meals

Ask the airline first. In Europe it must provide the hotel and meals. Elsewhere, airlines often hand out meal vouchers or a hotel for a cancellation that was their fault, but they may refuse when the cause is weather or a closed airport. Ask politely and ask for the answer in writing.

If the airline says no, pay for sensible costs yourself and claim later. Choose a modest room and cheap meals. Insurers and airlines both look at whether costs were reasonable.

Keep each receipt and write down the time and name of the staff member who told you no. A short, dated note helps if you need to send a claim to the airline or your insurer later.

Sources for this section: European Union, Regulation (EC) No 261/2004; Smartraveller, Travel insurance.

How travel insurance fits in

Travel insurance is a contract, so the fine print decides. Smartraveller says there is no automatic refund when the Australian Government raises its advice to "do not travel" or reports an incident such as an airport closure. It also says to read and understand the policy terms.

Check for these items on your policy before you leave:

• Delay cover: does it pay for meals and a hotel after a set number of hours, and how many?
• Cancellation and extra costs: does it cover a new ticket if you have to buy one?
• Exclusions: strikes, weather events and war are often excluded or limited. Read those lines.
• Buying time: cover usually does not apply to events that were already known when you bought the policy.

Insurers usually expect you to claim from the airline first, then claim the rest from them. Send the cancellation note, your receipts and your ticket. If you need to complain, Smartraveller points travellers to the travel provider, the ombudsman or the consumer affairs body.

Smartraveller also says travellers who cannot afford insurance cannot afford to travel. A disrupted trip is much cheaper to manage when cover is in place.

Sources for this section: Smartraveller, Travel insurance.

A recent example

The Chile earthquake on 27 February 2010 showed how fast plans can fall apart. The magnitude 8.8 quake closed Santiago airport and halted flights for a time, and travellers connecting through it had to be rebooked. Every cancellation is different, but the steps stay the same: speak to the airline early, record the facts, keep your receipts and read your policy.

Before your next trip, save the airline's phone number, a copy of your policy and your insurer's help line in your phone and on paper. Smartraveller also lets you register your travel details online, so the department can reach you in an emergency.

Sources for this section: Centre for Aviation (CAPA), Chile's massive earthquake: aviation update, 1 March 2010; World Airline News, 1 March 2010; Smartraveller, Top 10 travel tips.

Sources

1. Smartraveller, Travel insurance: smartraveller.gov.au
2. Smartraveller, Top 10 travel tips: smartraveller.gov.au
3. European Union, Regulation (EC) No 261/2004: eur-lex.europa.eu
4. Centre for Aviation, Chile's massive earthquake, aviation update: centreforaviation.com
5. World Airline News, Santiago airport closed after the Chile earthquake, 1 March 2010: worldairlinenews.com