Warning over major industry failures
Online financial protection firm ProtectMyHoliday.com is warning of possible major failures in the next 12 months as cash runs dry in the travel industry.
It came as SkyEurope filed for creditors’ protection to restructure its debt yesterday (Monday).
Last year proved the largest losses to the airline industry in its history with over 50 airlines collapsing, many of them small to medium in addition to XL Airways and Nationwide in South Africa.
As the credit crunch continues at pace into 2009 with no sight of immediate recovery, the major airlines left who rely on the term ‘cash is king’ are now running out of time, the company claims.
Director Paul Mclean said: “This has become a normal day at the office, but companies such as SkyEurope just cannot continue to hemorrhage money, sadly there will be others.
“Consumers have read about many large corporate failures in many industries over the last 12 months demonstrating that no company is exempt from failure.
“Airlines and other sectors of the travel industry simply cannot continue with the spiraling events affecting their business, from the credit crunch already crippling their financial suppliers to the large drop in demand for travel. “
The company runs an affiliation programme allowing websites to link and earn an introductory commission for each policy sale. Alternatively, annual corporate cover is available covering all agents’ ticket sales.
“As we now start to see bigger failures on the horizon, it’s critical that the travel industry take out insurance protection for their business exposures and to cover their clients. Such large exposures could easily ruin travel companies in the UK,” Mclean said.
Phil Davies
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