Portuguese charter airline Hi Fly will have to pay the damages for flights that failed to operate on its behalf. Last week, the Icelandic Transport Authority (ICETRA) ruled that the carrier is obligated to provide compensation for other passengers.

The news comes after Niceair, a small startup airline that operated under Hi. Fly's operating license, filed for bankruptcy in May. Under ICETRA's Air Passenger Rights, airlines have to offer several options to passengers if they are denied boarding or if their flight is delayed, canceled, or downgraded.

Up to $435 per passenger

According to Iceland Monitor, ICETRA recently ruled in two different cases that Hi Fly is to pay damages of €400 ($435) to five individuals for canceling Niceair flights scheduled between April 10th and 11th. The airline also must pay the airfare of the passengers who had to purchase flights from another airline as a result of the cancelation.

In a statement to Iceland Monitor, ICETRA spoke about its ruling.

“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.”

Photo: 
Renatas Repcinskas/Shutterstock]

The situation is reportedly not the only complaint ICETRA has received about Hi Fly. According to Iceland Monitor, more people are expected to be compensated and get their fares paid, considering the agency "has more complaints" on the table.

A one-aircraft-operation

On May 19th, Niceair filed for bankruptcy. However, since Hi Fly operated the brand, the airline sold Niceair's tickets, meaning the compensation must come from Hi Fly. Niceair's board of directors reportedly claimed the company was severely affected by the poor performance of Hi Fly because it caused Niceair to no longer have a plane available for its flights.

Niceair only had one aircraft, an Airbus A319. The brand went over a month without a plane before it officially ceased operations. In a statement detailing the bankruptcy filing, the airline stated that its 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."

Photo: Niceair

The airline did not even operate for an entire year, as its first scheduled flight occurred on May 30, 2022. The carrier's officials reportedly worked hard to obtain another aircraft, but the clock was ticketed.

"We deeply regret the harm caused to the company's customers, staff, suppliers and others affected," the airline said. "All claims will go to their legal channel."

Flight cancelation protocol

Air Passenger Rights outlined in EU Regulation 261/2004 ensure that airlines offer various options to travelers should their flight not go smoothly or as planned. If a passenger is denied boarding or their flight is canceled, meals and refreshments in relation to the waiting time must be provided by the airline. Additionally, the traveler must have access to communication.

If necessary, overnight accommodations with transportation would also need to be offered, and compensation from €125-€600 ($135 to $652) depending on the flight distance.

A word from Hi Fly

Hi Fly's public relations department has shared the following statement about the alleged order with Simple Flying.

“As of today we have not received any order in that respect. Also Hi Fly did not receive due payments from Nice Air, a default that have triggered the contract termination and subsequent flights cancelation. Hi Fly will respect and comply with any applicable regulations.” -

Source: Iceland Monitor, Icelandic Transport Authority