Subscribe to Print Edition | Wed., September 03, 2008 Elul 3, 5768 | | Israel Time: 02:05 (EST+7)
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Imploding airline Alitalia could strand thousands of Israelis
By Irit Rosenblum, TheMarker Correspondent
Tags: aviation, travel, Israel 

Israelis who traveled to the Far East and South America with low-cost Alitalia airline tickets purchased months ago could be stranded overseas if the struggling airline halts operation, warn Issta and Ophir Tours ticketing agencies. Issta's V.P. Marketing, Ronen Karaso, says that customers have not been canceling flight tickets for trips in the immediate future because it would entail cancelation charges. But there have been some cancelations of reservations for the holiday season. El Al reports that it has already experienced an increase in demand for flights, and that it is preparing to up capacity.

"Fly and pray" is the only recommendation travel agents could offer travelers scheduled to travel with Alitalia. Ophir Tours deputy CEO Yehuda Zarafani says the company is obligated to protect its clients' interests as well as its own. "So when a customer wishes to buy Alitalia tickets now, they must sign an agreement releasing the agent from any liability that may arise. Anyone unwilling to do so is directed to another airline."

The response of the business clientele market to the news of Alitalia's woes has been restrained. Yaakov Amsalem, director of the business travel agency Amsalem Tours, says his company has seen no cancelations for Alitalia flights. "It could be that customers believe that as a national airline subsidized by the Italian government, Alitalia has sufficient backing, so the news of its bankruptcy has less of an effect than it would had a private company been involved," he says.
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Past experience has shown that it is very difficult to collect reimbursement from bankrupt foreign airlines, says the Israel Consumer Council's legal counsel, attorney Saleit Koler. "Theoretically, a receiver or liquidator is appointed, and an application can be made for repayment of the debt. But this is a foreign company, operating under a legal system that we are unfamiliar with and in a foreign language," Koler says.

"The main recommendation to consumers is to consider other flight options at this stage, and to inquire about cancelation fees. In most cases it's best to pay the cancelation fee and buy a different ticket, which comes out cheaper than having to buy a new ticket after getting stuck with no flight due to a cancelation. Even if the cancelation fee is 100%, it's still an option worth considering, since buying a new ticket now could be cheaper. It would also enable customers to plan the flight instead of making last-minute decisions under pressure, after a cancelation," she says.

Customers who have bought Alitalia tickets for trips lasting more than one week from Israeli agents over the telephone or internet within the past two weeks and are scheduled to depart in three days or more are entitled to cancel them for an NIS 100 fee. This right applies to any long-distance transaction, even if the travel agent denies it over the phone or the general conditions of the transaction stipulate a higher cancelation fee.

To cancel a transaction in these circumstances, send a fax or email to the travel or ticket agency where you bought the ticket, including the date and a demand for reimbursement for no more than NIS 100.

"If someone is willing to take the risk and buy an Alitalia ticket now, he or she should make sure and pay by credit card, which will allow them to cancel the transaction in case the flight is canceled, based on failure of the transaction," Koler emphasizes.
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