HiFly may be liable for refunds of bankrupt Niceair tickets

Niceair, an Icelandic airline that recently filed for bankruptcy, may leave customers seeking refunds for their tickets to direct their claims to HiFly Malta, the company responsible for flight operations.

While Niceair cited non-payment by HiFly Malta as the reason for grounding, HiFly has refused to issue refunds. Customers who paid by card can request a refund through their bank or card issuer, but those who made cash payments face a more complex situation. In one instance, students who transferred money to Niceair for a cancelled flight were advised by the Icelandic Transport Authority to address their demands to HiFly, as it held the operating license. HiFly, however, declined to reimburse the students, placing the responsibility on Niceair.

The European regulation on air passenger rights holds the airline operator responsible, and affected passengers can file a complaint with the Icelandic Transport Authority, which will make a ruling on the matter. Customers with Niceair gift vouchers must make a claim from the airline’s bankruptcy estate.