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Swedish Air Carrier Fly Olympic AB Files Bankruptcy And Cancels All Operations

August 2, 2014 - UK Civil Aviation Authority has reported the Swedish air carrier Fly Olympic AB has filed bankruptcy and no longer in operation.

Passengers who booked directly with the airline via a credit or debit card should contact their card provider. Passengers who purchased Scheduled Airline Failure Insurance (SAFI) should contact their insurer.

Passengers who booked through a Travel Agent are advised to contact them in the first instance. Passengers who paid by any other means will need to make a claim request directly to Fly Olympic AB. UK customers currently abroad are advised to make alternative arrangements with other airlines.


The carrier released a statement which stated “Regrettably after two weeks of trying to find a solution to our financial difficulties, at 16:00, Tuesday the 29th of July 2014, Asian Pacific / Fly Olympic filed for bankruptcy. “The new operation to Africa performed dramatically below all reasonable expectations, and the losses sustained were too great for a company of our size to survive. We had discussed with several investment groups over the last 10 days in a bid to save the company but unfortunately time ran out. All flights are cancelled and all reservations are therefore also cancelled. An administrator will be appointed as soon as possible whom will take over the running of the company”. 

It has been reported that Fly Olympic had leased and painted an Airbus A320-231 LY-SPC (msn 415) from Small Planet Airlines. The carrier operated from Stockholm to Asmara, Baghdad, Erbil, London (Gatwick) Mogadishu, Mykonos, Sulaymaniyah and Thira (Santorini), flights also operated from Gothenburg.

UK Civil Aviation Authority released a statement which reads “We understand that the Swedish carrier Fly Olympic AB, which operated flights from London Gatwick to Eritrea and Somalia via Stockholm and Athens has ceased operations and filed for bankruptcy. Fly Olympic AB was not covered by the Civil Aviation Authority’s (CAA) Air Travel Organizers' Licensing (ATOL) Scheme and neither the CAA nor anybody else holds a bond or fund to administer claims in respect of this failure.


“If you booked direct with Fly Olympic AB and paid by credit card you may be protected under Section 75 of the Consumer Credit Act 1974 and you should contact your card issuer for further information. If you paid by debit or charge card you should contact your card issuer for advice. Similarly, if you purchased Scheduled Airline Failure Insurance (SAFI) you should contact your insurer.” 

Air Travel Organizers' Licensing (ATOL) is a United Kingdom Civil Aviation Authority (CAA) scheme to protect people who have purchased package holidays (Thomson, Thomas Cook, etc.) and flights from a member tour operator. The majority of UK tour operators are required to hold an ATOL license, without which they may not legally sell air travel. ATOL licensed firms will have had their business practices inspected by the CAA. 

An ATOL licensed tour operator must also obtain insurance bonds from the CAA. The aim of this is to provide refunds to travelers affected by any event which causes the airline to be unable to provide travel for its customers, and to arrange for flights (in addition to accommodation and other items which may be included in a package holiday) to return home those who are still abroad at this time. 

Airlines are not included within the ATOL Scheme, so if you booked direct with an airline that has ceased trading you will not be covered. If you paid directly to the airline by credit card you might be protected by Section 75 of the Consumer Credit Act 1974. You should check with your card issuer for further advice. You may have similar cover if you paid by Visa debit card. Check with your bank.

Booked through an Airline Ticket Agent - If you booked your ticket through an airline ticket agent you should speak to the agent in the first instance; they may have provided travel insurance that includes Scheduled Airline Failure cover, so check with your agent.

Scheduled Airline Failure Insurance (SAFI) - Some airlines and airline ticket agents will offer customers either a specific Scheduled Airline Failure Insurance (SAFI) policy or include similar protection within a broader travel insurance product. The type of protection provided may vary depending on the type of policy taken out. A policy may simply cover the cost of the original tickets purchased or any unused portion, or the additional cost of purchasing new flights, such as new tickets for travel back to the UK.

Booked with an ATOL holder - If you have booked flights or a holiday that includes flights with a travel firm that holds an ATOL (Air Travel Organizer’s License) and received confirmation that you are ATOL protected, the travel firm is responsible for your flight arrangements and must either make alternative flights for you so that your holiday can continue or provide a full refund. If you are abroad, it should make arrangements to bring you home at the end of your trip. Contact the ATOL travel firm (helpline on ATOL: 020 7453 6333 Monday - Friday 10.00 - 17.00 Normal working days).

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