What are my rights if an airline fails?

Have a question? Ask our expert Simon Calder

Q We are independent travellers stranded in Cyprus because of the collapse of Cobalt. We tried to get rescue flights with Wizz Air and Blue Air without success but couldn’t find anyone to help us.

We have now had to book expensive one-way Pegasus flights via Istanbul for £435 each in three days’ time. In addition our M&S travel insurance has refused to tell us if we have scheduled airline failure insurance. We spoke to someone who said it would have to be addressed further when we get home.

What is your advice?

Ruth B

A The Cypriot airline Cobalt flew from Gatwick, Heathrow and Manchester to Larnaca, and from Gatwick to Athens, until the evening of 17 October.

As with the failure of Primera Air earlier this month, Cobalt ran out of cash in October: a month when there is little revenue coming in but large bills – for aircraft leases, fuel and handling – keep arriving.

I estimate that 10,000 people were stranded by the collapse. Sadly your journey is too late to qualify for the remarkably generous offer from the Cypriot Ministry of Tourism. It promised anyone booked to “return to their place of residence” up to and including 24 October a single one-way ticket in economy class for their repatriation, at the expense of the Republic of Cyprus.

Since then, the most useful “rescue fares” for stranded travellers have been those offered by easyJet; it has far more flights between Cyprus and the UK than Wizz Air and Blue Air. But in any event there should be no need for you to worry, because the standard policy document from M&S Insurance specifies: “We’ll pay additional travel and accommodation costs if you have to make alternative travel arrangements to reach your destination or home on the return journey if … your transport operator or accommodation provider becomes insolvent.”

That is high-quality airline failure insurance, and I am mystified about why there would be any doubt that your replacement flights would not be eligible for a refund.

Every day, our travel correspondent, Simon Calder, tackles a reader’s question. Just email yours to s@hols.tv or tweet @simoncalder