11 August 2008

IPP steps into scheduled airline failure protection row

Calls for scheduled airlines to join the ATOL consumer protection scheme have been described as Ã¢â¬Åâœsimply ludicrousÃ¢â¬â¢.

Paul Mclean, director of International Passenger Protection, revealed that his company was in consultation with airlines who want to provide consumer protection, including a number of European carriers.

A new site been developed www.protectyourholiday.com to allow consumers to protect themselves at a Ã¢â¬Åâœnominal costÃ¢â¬~.

The site can will be able to be linked to any airline site and to operators who are not offering consumer protection and are approved by IPP.

Mclean said: Ã¢â¬ÅâœTo ask the Civil Aviation Authority to impose a levy for airlines is simply ludicrous as they have had a great difficulty already in implementing the existing levy and I do not think anyone is yet aware if they are fully insured to protect their maximum loss and if they are this will cost them possible half the amount of the levy on an annual basis.

Ã¢â¬ÅâœHaving evaluated the airlines and likely failures, single airlines could cost between Ã£60 million and Ã£500 million when repatriation costs are taken into consideration.

"What sort of levy therefore would be needed to cover these potential losses and at what cost to the consumers with already increased prices due to fuel increases and numerous existing taxes?"

He said he was surprised that IPP has never been consulted by the CAA or any group about airline failure protection, despite claiming to be the largest provider of this type of insurance in 30 countries.

Ã¢â¬ÅâœWe are amazed by the continuing saga of wanting to protect airlines and yet there is never any mention of the numerous car ferries, coach journeys, rail journeys etc., who similarly have no protection.

Ã¢â¬ÅâœThe consumer has a choice and that is what the government has decided.

"There is plenty of availability for consumer protection in the market today and this includes the ABTA Protection Plan that is available in every ABTA office throughout the country and on travel policies including ABTA GUARD and the Post Office.

Ã¢â¬ÅâœSome airlines already provide an offer of protection, and these include British Airways, Ryanair, EasyJet, Flybe, and many others are in negotiations to do likewise.

Ã¢â¬ÅâœAlso the majority of consolidators (ATOL) already take our scheduled airline failure insurance to protect themselves so they can rebook or repatriate their customers.Ã¢â¬~

by Phil Davies