How exposed is your airline to credit card hold backs?

The murky world of credit card hold backs is being revealed in the failure of Flyglobespan. This BBC online story explores the ins and outs of whether one of Flyglobespan’s credit card providers contributed to its downfall by withholding funds from online ticket sales.

Credit cards_resized.jpgIt is certainly an issue we’ve heard a little about before, albeit not too much on the record as airline bosses don’t like revealing this kind of detail about their business. I know it was something SkyEurope battled with, and other airlines like Zoom and XL Airways are mentioned in various reports.

Clearly getting the money for the sale of an airline seat is not as straightforward as you might think, which makes sense when the money is being handled by a third party and not yourself.

After this latest story I am sure a lot of carriers will be taking a close look at their arrangements with their credit card operators to check that they won’t come a cropper.

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