When airlines go bust: Managing passenger disruptions effectively

April 13, 2025

When an airline collapses, the consequences can be severe. Thousands of passengers are often left stranded, unsure how they will reach their destination or return home. Without a structured plan in place, the resulting chaos can damage passenger trust and create financial and reputational risks for carriers, regulators and the wider travel industry, writes Peter Slater, CEO, CMAC Group.
While the downfall of a carrier may seem unlikely, history shows it’s not uncommon. The collapses of Monarch Airlines in 2017 and Thomas Cook in 2019 – where more than 150,000 Thomas Cook customers and crew were left stranded overseas – demonstrated the immense logistical challenge of repatriation. Yet, with the right preparation, the industry can mitigate the impact of such events and provide both passengers and crew with a smoother, more supportive experience during difficult times.
One of the biggest lessons from past airline failures is that crisis planning cannot be left until disaster strikes. Regulators must have pre-agreed contingency plans with transport and accommodation partners to ensure they can act swiftly wherever and whenever it is needed. Without pre-secured agreements, affected individuals can be left scrambling for alternative transport and accommodation, often facing long delays, financial loss and uncertainty.
Providing support
In cases of collapse, regulators such as the Civil Aviation Authority (CAA) are responsible for organising repatriation efforts, working closely with transport and accommodation specialists like CMAC Group to ensure those affected are protected and treated fairly. Access to a vast network of transport partners plays a crucial role in responding to disruption. When thousands of individuals need to be relocated quickly, the ability to allocate vehicles efficiently is essential. Having accommodation options in place is equally critical, preventing passengers from being left without a place to stay if they are unable to travel onwards. Effective communication is key in these situations. Those affected need clear, real-time updates and a structured strategy as this significantly reduces frustration and confusion.
Also essential is a strong supplier network, ensuring that resources can be deployed where they are needed most. For example, Thomas Cook’s collapse required more than 40,000 passenger transfers in coordination with CMAC Group and the CAA. This level of coordination highlights the importance of having trusted, pre-arranged agreements in place to ensure a swift and efficient response when large-scale disruptions occur.
The collapses of Thomas Cook and Monarch Airlines are significant examples of large-scale passenger repatriations. While both operations assisted passengers in returning home, these events reinforced the importance of clear and timely communication. Travellers rely on accurate updates to navigate unexpected disruptions and providing real-time information reduces uncertainty and frustration.
Technology
Technology has transformed how these large-scale transport operations are managed, with real-time tracking, automated dispatch systems and self-service booking options allowing passengers to arrange transport with minimal delay. Carriers that enhance their strategies with automated messaging systems and notifications can further improve the passenger experience during such events.
Speed of response is another important factor. The faster a crisis plan can be mobilised, the better the outcome for affected individuals. Here, regular crisis simulations should be conducted to test response plans and identify potential gaps before a real emergency occurs. By integrating technology with crisis planning, operators can streamline their processes and ensure rapid decision-making when disruptions arise.
While these failures are an inevitable challenge, the way they are handled can make a significant difference. Rather than reacting when a crisis unfolds, the aviation sector must take a proactive approach, ensuring robust contingency plans are in place to minimise disruption. Strong partnerships between operators, regulators and transport and accommodation partners are essential to delivering a seamless response, whether in large-scale repatriation efforts or day-to-day flight disruptions.
Passenger and crew wellbeing should be at the heart of every crisis management plan. Technology and data-driven decision-making have a vital role to play in improving response times and ensuring they receive the right support when it’s needed most.
Preparation is the key to ensuring a well-managed crisis. By investing in planned strategies, strengthening transport and accommodation networks and ensuring passengers receive timely and transparent communication, industry bodies can transform the way disruptions are handled.