New call for airlines to provide failure insurance
A leading travel insurance provider is calling on more airlines to offer cover against failure.
Mondial Assistance has stepped into the debate over passenger protection cover in the wake of numerous airline collapses this year, including XL Airways and Sterling which left many travellers out of pocket.
The Air Transport Users’ Council is pushing for the Government to introduce protection for passengers in the event of a scheduled airline going bust.
With more people choosing to travel independently, rather than booking through an ATOL-bonded operator or ABTA agent, the economic climate means many are vulnerable to airline failures, Mondial warned.
Mondial has a number of airlines among its clients and is asking others to follow their lead and offer consumers airline failure cover as standard.
UK sales director Ben Smart said: “It is clear that consumers need more protection from the risk of airline collapse.
“Although some insurers do not pay out in the event of an airline failure, others have provided this level of cover for its travellers for some time.
“As the economic downturn continues to put pressure on businesses, it is essential that consumers are covered for potential losses.
“It is important that airlines meet the needs of their customers by providing comprehensive cover to suit the demands of today’s market.â€
He added: “We hope to see more insurers and airlines implement greater passenger protection during the tough economic times ahead.â€
by Phil Davies
Phil Davies
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