Connecting flight got cancelled after first leg of journey. Am I entitled to a full refund?

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If I were you I would do the credit card chargeback just to be on the safe side. The reason is Hong Kong Airlines is not a European airline and it was not destined to come to the UK and thus they are not obliged under EU law to give compensation. They actually know this but they wouldn't say it.

Same thing happened to me with Turkish airlines from Istanbul to Nairobi but when I called their offices in Manchester, they booked me a hotel overnight in Istanbul and scheduled a flight the following day.

I would trust your instincts on this because I'm not sure how much the travel insurance would pay.

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