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It is known that in the case of tourist packages, the tour operator is the one who has relations with the airline companies. They are expressed in the reservation of passenger seats on board the aircraft and the issuance of tickets, and the tour operator pays for the reservation in advance.   

However, what happens when tickets have already been issued, the full amount has been paid, and the air carrier cancels the flight due to unavoidable and extraordinary circumstances?  

The military conflict on the territory of Israel caused precisely such reactions from the airlines. In this article, we will examine the rights of tour operators. 

 Relationships with the airline: 

This concerns the so-called "group reservations", in which a tour operator or other travel organizer reserves seats for a specific flight in connection with its program for specific dates. The tour operator acts as a negotiator, who negotiates with the airline a transport service for the benefit of a third party - Art. 22, para. 1 of the Civil Code.  

The first stage of the relationship between the tour operator and the airline is the "purchase of seats". The names of the passengers are specified at a later stage, and then a ticket is issued by the airline. Until the ticket is issued, in the event of a flight cancellation by the company, it is obliged to refund the advance payments paid for the reservation to the tour operator. You can read more about this stage and the consequences of cancellation here. At the time of ticket issuance, or we can define it as the second stage, it is considered that a passenger transport contract is concluded, in which the carrier is the airline, and the passenger is the individual (tourist) who travels - Art. 66, para. 1 in conjunction with Art. 65 of the Civil Aviation Act (CAA). When the airline cancels the flight or for any reason simply does not perform it, it violates the contract. There is a breach of the passenger transport contract and the airline will owe compensation for the passengers' damages - Art. 79 in conjunction with Art. 82 of the Obligations and Contracts Act (OCA) in conjunction with Art. 65 of the Civil Aviation Act. 

But everything has its exceptions. It is possible for the airline to be released from liability if such circumstances exist - provided for by law or in general terms and conditions. For example, it is provided in Article 69 of the Civil Aviation Act that: 

Either of the parties may withdraw from the contract due to a declared or initiated war that poses a danger to the carriage, due to a blockade of the departure airport or the destination airport, due to the detention of the aircraft by the competent authorities, due to the closure of the departure airport or the destination airport by order of the authorities or due to other obstacles of this kind. 

An interesting point is that just as airline companies can cancel a flight, passengers also have this right. This is confirmed in Decision No. 3449 of November 29, 2022 of the Sofia City Court in case No. 11259/2021. 

In the event of flight cancellation for the reasons noted above, the airline owes a refund of the amounts prepaid by the tourists. And since we specified that this is a contract in favor of a third party, the amounts should be returned to the contracting party, that is, the tour operator.   

Rights under Regulation (EC) No 261/2004: 

There is also Regulation (EC) No 261/2004, which regulates the rights of passengers in such situations. According to Art. 7 thereof, in the event of cancellation of a flight by the air carrier, passengers are entitled to fixed compensation, in addition to the refund of the amounts paid for the tickets. This is the case unless passengers are (Article 5(3) of the Regulation): 

• informed of the cancellation at least two weeks before the scheduled departure of the flight; or
• informed of the cancellation between two weeks and seven days before the scheduled departure of the flight and are offered re-routing which allows them to depart no later than two hours before the scheduled departure of the flight and to reach their final destination less than four hours after the scheduled arrival time; or
• informed of the cancellation less than seven days before the scheduled departure of the flight and offered re-routing which allows them to depart no later than one hour before the scheduled departure of the flight and to reach their final destination less than two hours after the scheduled arrival time. 

However, if the air carrier proves that the cancellation is due to an irresistible and extraordinary reason, it shall be exempt from liability – Art. 5, par. 3 of the Regulation.