A European tour company has declared bankruptcy amid the fallout from Play airline’s shutdown.
Last month, budget airline Play cancelled all flights as it ceased operation with immediate effect.
The Icelandic airline said it had gone into administration, leaving hundreds of people without jobs and potentially thousands stranded.
The consequences have been felt by travellers across Europe.
German airline Condor offered rescue fares to some passengers, and other travel companies offered booking changes to those affected.
Thousands sought compensation for cancelled flights and altered travel plans as a result.
But a local tour company could not handle the number of customers it had to compensate – meaning it had to declare bankrupcty itself.
Reykjavik-based Tango Travel, which sold tour packages that relied mainly on Play flights, ceased operations at the start of this month, The Street reported.
Reykjavik-based Tango Travel, which sold tour packages that relied mainly on Play flights, ceased operations at the start of this month
A statement on Tango Travel’s website said: ‘Due to the heavy impact of the collapse of Play and with the interests of our customers in mind, Tango Travel has decided to cease operations in its current form.
‘Tango Travel has paid into the Travel Insurance Fund as required by law.
‘This means that our customers are entitled to a refund from the fund for trips that have been cancelled. This should speed up the refund process for our customers.’
Passengers entitled to a refund have options available. The Icelandic Tourist Board has shared advice on getting a refund.
In an official posting, it stated refund requests should be channelled to the agency through which they purchased the tickets – unless it has gone bust.
Under Icelandic law, the Travel Insurance Fund protects consumers in the case of travel company insolvency.
It only intervenes when a travel agency has gone bankrupt and had its operating licence revoked.
As such, passengers affected by the closure of Tango Travel should contact the tourist board.
It comes after budget airline Play cancelled all flights as it ceased operation with immediate effect last month
If you believe you are due a refund from another agency affected, you should start by contacting the company directly and following its refund process.
Operators that offered trips into or out of Iceland are struggling to reimburse so many claims, so this could be a lengthy process.
Meanwhile, national airline Icelandair has added capacity on some of its flights out of Reykjavik to accommodate the surge of travellers.
The Daily Mail has contacted Tango Travel for comment.
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Tour company declares bankruptcy amid Play airline shutdown chaos – how to claim a refund
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