Portuguese charter airline, HiFly has been ordered by the Icelandic Transport Authority (ICETRA) to pay compensation to passengers for flights that were cancelled under its operating license. The ruling also covers the airfare of passengers who had to book flights with another airline.
The news comes on the backdrop of Niceair, a startup airline operating under HiFly’s operating license filed for bankruptcy in May 2023.
As per ICETRA air passenger rights, airlines have to offer different options to passengers if they are denied boarding or if their flight is delayed, canceled, or downgraded.
In two different cases, ICETRA rules that, HiFly is to pay damages of €400 to five individuals for cancelling Niceair flights scheduled between April 10 and 11. The airline also must pay the airfare of the passengers who had to purchase flights from another airline as a result of the cancelation, reports Iceland Monitor.
“The rulings of the Icelandic Transport Agency have legal effect only against the parties to the case, although the rulings certainly have a precedent in cases involving the same flight or in similar cases,” ICETRA said in a statement to Iceland Monitor
Niceair filed for bankruptcy on May 19 citing poor performance of HiFly due to which Niceair didn’t have planes for its scheduled flights. Since Niceair operated under HiFly brand and sold its tickets, the compensation naturally would come from Hi Fly.
Niceair operated a sole A310 and went without a plane for a month before ceasing operations. In the bankruptcy filing statement, the airline said: “The decision was due to uncontrollable reasons and that the closure is particularly tragic as there were good grounds and experience had shown that there was a basis for direct international flights. We deeply regret the harm caused to the company's customers, staff, suppliers and others affected. All claims will go to their legal channel."