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A budget airline that began offering long-haul flights from UK airports earlier this year, including Stansted to the US, has collapsed.

Primera Air said it was ceasing all operations at midnight on Monday after 14 years of operations.

Flights to Washington and New York due to leave Stansted on Monday night were grounded and passengers have been told not to go to the airport on Tuesday.

One flight from Birmingham to Malaga arrived on Monday evening.

The airline, which had 15 planes, began offering low-cost flights from Stansted and Birmingham to North America - including Washington, Newark, and Toronto - earlier this year.

Flights from Manchester to Malaga were due to start later this month.

Most of the airline's business involved taking Scandinavian holidaymakers to destinations such as Spain, Greece, Italy, Egypt and Turkey.

Image copyright Angela Dorau Image caption Canadian Angela Dorau and her husband are stranded in Paris

Canadian Angela Dorau was in a queue to board a plane from Paris to Toronto with her husband when there was an announcement saying the flight had been cancelled.

She said: "Everybody was stranded. Currently my husband and I are in a dumpy motel by the airport trying to frantically scrounge together the funds to pay for another way home."

They are yet to find an alternative flight home - and she says what was supposed to be a budget trip looks like costing them an extra €2,000 (£1,780).

The UK's Civil Aviation Authority has advised passengers who have travelled on an outward Primera flight they will need to make their own arrangements to return to the UK.

Can I get my money back?

The Danish-registered airline is not part of the Civil Aviation Authority's ATOL Protection scheme, which covers only passengers booked on package holidays.

If you've paid by credit card for your flight, and paid more than £100, you may be able to claim compensation from your credit card firm under Section 75 of the Consumer Credit Act 1974.

If you've paid by debit card, and paid more than £100, you could try to contact your bank and ask about "chargeback". However, to get this form of compensation, your bank would need to claw back your money from Primera, which is insolvent.

If you booked through a travel agent which is ATOL-protected, you may be able to claim compensation via your travel agent.

If you have travel insurance, and your insurance covers insolvency, you may be able to claim from your insurance firm.

Consumer group Which? advises that you should contact your credit card issuer, travel agent, or insurer as soon as possible.

'A horrible experience'

Stranded in Malaga as our flight has now been cancelled for Monday 8 October. Will have to try and get other flights home. Sally James

My daughter Catherine is now stuck in Spain. She flew out on Saturday and was due to come back this Thursday. Antony Meadley

I was on a flight back to Newark (New Jersey) that was meant to depart at 5:55...an announcement went out at around 5:30. No one was given any plans, and everyone was just asked to leave...a horrible experience. Nickolaus Lachman

Growth 'unsustainable'

The airline said it had failed to secure long-term financing, meaning it had "no choice" but to file for bankruptcy.

Primera's decision to start competing with other low-cost long-haul operators such as Norwegian and Wow appears to have led to its demise.

Signs that the airline was in trouble came in August, when it said short-haul flights from Birmingham to seven European destinations would end on 3 September.

It also blamed the late arrival of new aircraft from Airbus that forced it to cancel flights and lease planes.

When it began long-haul operations from Stansted in May, Primera was offering flights to New York's Newark airport, Boston, Washington DC and Toronto starting at £149 each way.

It had planned to start flying from Madrid to New York, Boston and Toronto next month from €149 each way.

Airline analyst Alex Macheras told the BBC the airline's growth "simply wasn't sustainable".

"The general feeling in the industry was: this airline is travelling a bit too fast in terms of their expansion with a fleet of that size," he said.</s>
• Low-cost carrier Primera Air is declaring bankruptcy and ceasing all flight operations.
• In a leaked e-mail that surfaced Monday, Primera's director of operations informed crew that operations would cease on October 2 — while he stated that accommodations would be made for stranded crew. It is unclear what provisions will be made for stranded travelers. The company confirmed the bankruptcy in a statement to Business Insider.
• Primera began flying trans-Atlantic routes this spring, enticing travelers with fares for as low as $99 each way.

Primera Air — the low-cost European airline that turned heads this year when it offered $99 fares between the US and Europe — is planning to file for bankruptcy and cease operations.

The airline, which originally launched in 2009 as a tourism charter company, announced in 2017 that it would begin flights to North America for under $100 each way. The first routes, between London's Stansted Airport and New York, Boston, Washington, DC, and Toronto, began this spring, as the airline entered an increasingly competitive field of trans-Atlantic low-cost carriers.

In an internal e-mail that surfaced online today, Anders Ludvigsson, Primera's director of operations, shared the airlines plans to file for bankruptcy on October 2.

Ludvigsson's e-mail stated that travel arrangements would be made for flight crews who were located away from their operating bases, suggesting that the airline's operations would imminently cease — potentially forcing stranded passengers to make other arrangements.

Although the e-mail suggested that there would not be external communications from the airline before Tuesday, a statement on the airline's website appeared — seemingly prematurely — on Monday afternoon.

In a statement provided to Business Insider, Primera confirmed the plans to file for bankruptcy, as well as the complete cessation of the airline's operations.

During the several months that Primera operated long-haul flights, the airline was besieged with problems.

Delays in receiving new Airbus A321neo aircraft led to operational difficulties, including delays and cancellations. Customers became vocally unhappy with the airline's spotty performance record, often taking to social media to complain about cancellations and delays receiving compensation.

To fulfill service obligations despite the delayed aircraft deliveries, Primera "wet leased" aircraft and crews, adding a significant expense. In the leaked e-mail, Ludvigsson suggested that the cost of the wet leasing was too high, and Primera was unable to secure additional funding.

What remains unclear: What, if any, accommodations will be made by Primera for any passengers stranded away from home when the airline's operations cease. A representative for the airline could not immediately confirm plans for passengers scheduled to travel on the airline because "all the employees of Primera Air are let go." Business Insider will update when there's more information available.</s>Budget airline Primera Air is ceasing operations causing flights to be cancelled and passengers around the world to be stuck without a plane home.

The airline closed down at midnight on Monday and the Civil Aviation Authority has advised passengers who have travelled outbound on Primera Air will need to source an alternate route home.

Primera, which is registered in Denmark, has been in operation for 14 years, claimed it had ‘no choice’ but to file for bankruptcy after being unable to secure long-term financing.

But with the airline gone bust, can passengers claim compensation?

The usual contact details to claim compensation from Primera Air will no longer be of use, as they confirmed in a statement: ‘Kindly understand that the usual options for contacts (via email or phone) can not be offered any longer.’

The airline will not be in a position to give any refunds, so if you are entitled to compensation or a refund depends on how you booked the flight and if you have insurance.

If you booked through an airline ticket agent then contact them as there may have been appropriate insurance included in the booking.

If you booked on credit card then contact your provider as they will be jointly liable due to Section 75 of the Consumer Credit Act.

Booking through Paypal may be protected through its Buyer Protection Scheme – contact them for information.

If you have taken out travel insurance there may be cover for airline failures, consult your policy or contact the insurer.

These options apply if you are yet to travel at all or if you have travelled on the outbound flight and need a return flight.

In summary, your options are to contact your travel agent, your insurers and your card providers, depending on how you have booked.

The only option to receive compensation or a refund from Primera Air is to submit a claim as a creditor, but this would be a very lengthy and potentially pointless process.

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MORE: Thousands of people with asthma suffer debilitating side-effects of ‘toxic’ drugs, charity says</s>Would-be passengers have been warned not to turn up for Primera Air flights after the discount airline ceased operations ahead of filing for bankruptcy.

Stansted said on Monday that travellers due to fly with the airline should not travel to the airport, from which Primera operated flights to Spain and the US.

Birmingham Airport referred customers to the Civil Aviation Authority advice, which urged those expecting return flights to the UK with the operator to make fresh arrangements home.

The Foreign Office said its consulate in Malaga had already been contacted for advice.

Stansted Airport said in a statement: “Passengers due to travel with Primera Air are advised not to travel to the airport and instead contact the airline directly.”

The Danish airline said it was a “sad day” for staff and passengers but it had “no other choice than filing for bankruptcy”.</s>Nordic low-cost airline Primera Air has ceased all operations and is expected to go into administration.

Stansted said travellers due to fly with the airline should not travel to the airport, from which Primera operated flights to Spain and the US.

Stansted told the company it would seize one aircraft, which was already on the ground and was not due to fly on Monday, because of unpaid bills.

Birmingham Airport referred customers to the Civil Aviation Authority advice, which urged those expecting return flights to the UK with the operator to make fresh arrangements home.

Primera, which has operated for 15 years, began offering flights for £99 across the Atlantic from Stansted to New York, Boston, Washington, and Toronto this year.

In a leaked email sent to news organisations, including Sky News, Primera's director of operations Anders Ludvigson, said the airline would file for bankruptcy on 2 October and stranded crews would be found accommodation.

The airline was forced to cancel flights from Birmingham to America because of a delayed aircraft.

It later decided to end operations from Birmingham altogether, leaving many people out of pocket for their purchased tickets.

On its website, Primera said: "Airline Primera Air and IATA codes PF and 6F have been suspended as of today, October 2nd, 2018."

"On this sad day we are saying goodbye to all of you.

"Kindly understand that the usual options for contacts (via email or phone) can not be offered any longer."

Primera Air, which is Icelandic-owned but based in Copenhagen, began in 2003 and served more than 20 countries.

Mr Ludvigson blamed the airline's collapse on the high cost of leasing planes after the delivery of new planes was delayed.

A London Stansted Airport spokesperson said: "We have learned this afternoon that Primera Air has ceased all flight operations and will go into administration at midnight tonight.

"Passengers due to travel with Primera Air are advised not to travel to the airport and instead contact the airline direct for the latest information regarding their flight.

"We understand this is a difficult time for customers whose travel plans have been disrupted and we are providing information and assistance to those who have already travelled to the airport for flights that had been due to depart today."

The Foreign Office said its consulate in Malaga had already been contacted for advice by a Briton.</s>Student Pavithra Priyadarshini is stranded at Dulles airport after the collapse of Primera Air.

Passengers have been left stuck in airports around the world after the airline Air said it was ceasing all operations at midnight on Monday.</s>Primera Air — the low-cost European airline that turned heads this year when it offered $99 fares between the US and Europe — is planning to file for bankruptcy and cease operations.

The airline, which originally launched in 2009 as a tourism charter company, announced in 2017 that it would begin flights to North America for under $100 each way. The first routes, between London's Stansted Airport and New York, Boston, Washington, DC, and Toronto, began this spring, as the airline entered an increasingly competitive field of trans-Atlantic low-cost carriers.

In an internal e-mail that surfaced online today, Anders Ludvigsson, Primera's director of operations, shared the airlines plans to file for bankruptcy on October 2.

Ludvigsson's e-mail stated that travel arrangements would be made for flight crews who were located away from their operating bases, suggesting that the airline's operations would imminently cease — forcing stranded passengers to make other arrangements.

Although the e-mail suggested that there would not be external communications from the airline before Tuesday, a statement on the airline's website appeared— seemingly prematurely — on Monday afternoon.

In a statement provided to Business Insider, Primera confirmed the plans to file for bankruptcy, as well as the complete cessation of the airline's operations.

During the several months that Primera operated long-haul flights, the airline was besieged with problems.

Delays in receiving new Airbus A321neo aircraft led to operational difficulties, including delays and cancellations. Customers became vocally unhappy with the airline's spotty performance record, often taking to social media to complain about cancellations and delays receiving compensation.

To fulfill service obligations despite the delayed aircraft deliveries, Primera "wet leased" aircraft and crews, adding a significant expense. In the leaked e-mail, Ludvigsson suggested that the cost of the wet leasing was too high, and Primera was unable to secure additional funding.

A representative for the airline could not immediately confirm plans for passengers who are left stranded by the airline because "all the employees of Primera Air are let go."

In the absence of options from the airline, the UK Civil Aviation Authority issued an advisory encouraging passengers to book their own alternative tickets home. The Authority further elaborated that passengers may be able to file a claim with their credit card issuers or travel insurance providers.</s>Primera Air, which expanded into the United States earlier this year and recently announced more flights for next summer, is going out of business.

The European budget carrier said in a statement on its website that it is ceasing operations on Tuesday, Oct. 2.

"On behalf of Primera Air team, we would like to thank you for your loyalty,'' the statement says. "On this sad day we are saying goodbye to all of you.''

It did not provide information on ticket refunds.

The news comes less than than two months after no-frills Primera touted three new U.S.-Europe routes, with fares as low as $149 each way. The airline planned to fly to Brussels from Boston, Newark Liberty and Washington Dulles.

Primera, based in Latvia, announced an expansion into the United States in August 2017. The airline announced six flights from Newark Liberty and Boston to London, Birmingham, England, and Paris on Airbus A321neo planes. The flights began earlier this year.</s>Would-be passengers have been warned not to turn up for Primera Air flights after the discount airline ceased operations ahead of filing for bankruptcy.

Stansted said on Monday that travellers due to fly with the airline should not travel to the airport, from which Primera operated flights to Spain and the US.

Birmingham Airport referred customers to the Civil Aviation Authority advice, which urged those expecting return flights to the UK with the operator to make fresh arrangements home.

The collapse of the airline comes almost a year to the day after travel firm Monarch went to the wall, leading to the redundancies of nearly 2,000 employees.

More than 110,000 Monarch passengers were left overseas and the Civil Aviation Authority helped repatriate stranded holidaymakers in what transport secretary Chris Grayling called an “unprecedented response to an unprecedented situation.”

The number of Primera Air passengers left stuck by the collapse is reported to be in the thousands, while those who have booked on tours have been urged to contact their agents.

The Danish airline said it was a “sad day” for staff and passengers but it had “no other choice than filing for bankruptcy”.</s>European discount airline Primera Air, which offered budget-priced fares between the U.S. and Europe, is suspending all flights and filing for bankruptcy protection.

The airline said on its website Monday, "On this sad day we are saying Goodbye to all of you." It isn't giving information about refunds.

In a statement, directors say Primera couldn't get financing from its bank and spent more than 30 million Euros ($34.7 million) leasing planes and rebuilding one with severe corrosion.

Primera started as a charter airline in Iceland and became one of several budget airlines to offer transatlantic service in recent years, flying to Newark, New Jersey; Washington; Boston and Toronto.

This month, Primera touted new flights next summer between Madrid and North America starting at 149 Euros ($172).
Danish airline Primera Air collapses into bankruptcy and announces that it is ceasing all operations at midnight on Monday.