ABTA Members to offer protection against airline collapse
Customers of the long-haul, low-cost airline Oasis could find that they are out of pocket as the airline has ceased trading. However, all ABTA Members can offer customers financial protection either through the package travel regulations, if customers book a package, or by offering scheduled airline failure insurance through policies such as the ABTA Protection Plan.
“This failure in a tough economic climate, along with the closure announcements of four other American airlines in recent weeks, highlights the importance of having financial protection in place when you book flights,” said David Marshall, ABTA Head of Policy and Communications. “ABTA Members can offer the maximum amount of protection. Just ask.”
British customers are protected if an airline goes out of business if they book:
- with any ABTA company. If an ABTA Member isn’t an ATOL holder they can still offer financial protection to a customer for a flight only through the ABTA Protection Plan or any other scheduled airline insurance policy. These are typically very low cost.
- the flight as part of a package. The Package Travel Regulations provide total financial protection for all travel arrangements booked as part of a package.
- Book with an ATOL holder. An ATOL holder may ask a client whether they want to take out airline failure insurance, and if an airline goes bust then that insurance will cover them, if the ATOL holder didn’t offer them this, then they have to protect the customer anyway.
- direct with the airline and use a British credit card and the booking was over £100.
Theodore Koumelis
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Monday, April 14, 2008