Airline failure can catch travellers unaware
Holiday makers are not always aware of their rights if an airline carrier goes out of business during their holiday abroad. Last summer, following the financial collapse of "no frills" carrier, EUjet, over 10,000 passengers were still on foreign soil at the time. Consumers need to be informed about the different types of protection and insurance available and why those EUjet customers were left frustrated.
Those travellers assumed they would receive a full refund, unaware that there is no statutory protection in the event of an airline failure. There are two different schemes in operation that people should understand before booking their holidays this summer.
One important safeguard comes when booking with a travel agent or organiser offering ATOL (Air travel Organisers Licensing) protection. ATOL protects holiday makers from losing money, or being stranded abroad without a flight home. If an airline goes into liquidation, customers with outstanding bookings, are able to use ATOL to gain a full refund. Most travel insurance policies don't cover this at all.
Travellers should also look out for travel agents who are members of ABTA - The Association of British Travel Insurers. If these agents makes fundamental changes to the travel itinerary, after booking, then, as ABTA members, they must offer compensation- unless there were circumstances beyond their control. Plus if they go into liquidation during your trip, they will either get you home or help you continue the holiday.
Holiday makers need to know which protection applies to them, and how to arrange cover for all aspects of their holidays, should they wish. Graham Linney, Insurance Manager at Travel Insurance Web: "It's important that people know and understand where their 'safety net' is. Travel insurance is vital, but it is only a part of the overall protection available for your holiday, and even if customers chose not to use an ATOL or ABTA bonded firm, they should realise that their travel insurance may not cover them if, for example, their airline goes into receivership while they are outside the UK."