You may have seen this in the mainstream media, but Cyprus-based airline Cobalt Air went into administration on Wednesday.
We have covered Cobalt a few times on Head for Points. I was impressed by their business class offering – photo below – which seemed far superior to what BA offered on the 4+ hour flight to Larnaca. Unfortunately it seems that recent rises in oil prices coupled with traditionally weaker Winter bookings tipped them over the edge.
The unfortunate truth is that you should be wary about booking with ‘secondary’ carriers at the moment. Whilst you money is protected as long as you pay with a credit card, you will still be out of pocket since the cost of buying replacement tickets on another carrier at short notice is unlikely to be cheap.
Even established carriers such as Flybe are looking very weak, and Norwegian could still go over the edge.