With the recent fluctuation in Thomas Cook shares, and Flybmi going bankrupt at the beginning of 2019, we thought it would be helpful to explain to you what cover you need whilst travelling to avoid losing money as a result of such events; just because your airline/travel company goes bankrupt doesn’t mean that you should too.
Scheduled Airline Failure Insurance
What is Scheduled Airline Failure insurance?
Commonly known as ‘SAFI’, this type of travel insurance cover provides you with protection against airline insolvency.
Why do I need it?
If the airline you are flying with becomes insolvent, meaning that some or all of your flights get cancelled, SAFI aims to allow you to complete your trip as hassle-free as possible by providing the following;
- A specified sum of money to purchase new flight tickets, or reimbursement for unused tickets, if the airline collapses before you travel
- The cost to book an alternative flight home if your airline goes bankrupt whilst you are on travelling
Is Airline Failure common?
Ten airlines have closed in the past four years, according to BBC research. One of these was the British airline, Monarch, and it was only in February this year that Flybmi filed for administration. This meant that some passengers who had flights scheduled with the airline were left ‘stranded’ at airports and had to arrange alternative flights.
According to this BBC news report, analysts are blaming ‘fuel costs, green taxes, Brexit uncertainty, fierce competition and falling passenger numbers' for the increase in airline insolvency.
How do I get cover?
Most high-quality travel insurance policies, such as those purchased via PayingTooMuch.com, will automatically include cover for Scheduled Airline Failure. However, as always, it is worth checking this with your travel insurance provider if you are unsure.
ATOL Protection
What is ATOL Protection?
ATOL (Air Travel Organiser’s Licence) Protection is, in principle, a very similar cover to SAFI; it aims to protect you if you have purchased a package holiday through a travel company, and they go bankrupt. In fact, if you have booked a holiday package via an ATOL registered travel company, then you do not need to ask about SAFI separately.
Why do I need it?
Making sure that the company you have bought your package holiday with is ATOL protected can stop you losing money or becoming stranded abroad. ATOL ensures that;
- You can finish your holiday and get home as planned if the business collapses whilst you are on holiday
- You are provided with a full refund for the holiday you booked if the business collapses prior to your holiday
If you have only arranged a flight through a travel company, rather than a package holiday, then you should make sure that you clarify with them whether the flights are still protected under ATOL, as this is not always the case.
How do I get cover?
If you have booked a holiday with PayingTooMuch.com then you can rest assured that we are ATOL protected. This is also the case with most travel companies, but if you have any concerns then you can use this Database Search on the Civil Aviation Authority website to double check
If you are ready to book your travel insurance, call our travel team on 01243 784000 to arrange a competitive travel insurance quote.
