Warning over winter airline failures
Wednesday, 05 Nov, 2009
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Further airline failure are predicted this winter with a knock-on effect across the industry.
The warning came from insurer International Passenger Protection which said a number of airlines collapsed over the last two Christmas periods.
A similar impact is expected this year, with a knock-on effect to other parts of the travel industry being severe, as those linked to all areas of travel are affected.
Michael Ward sales and marketing manager for IPP’s ProtectMyHoliday brand said: “We predict well over half of travellers leaving the UK will be without financial protection over the festive period.
“People are visiting friends and relatives and not booking accommodation or other component parts of their trip which means no protection under the government [ATOL] scheme.
“Fares also increase over this period and people seem oblivious to the risk they are taking.
“Travellers see logos for ATOL, ABTA and IATA and assume they are safe, however if you are independently booking this is not the case,” warned Ward.
Traditionally airlines sell huge volume of tickets over this period and will have budgeted accordingly. If these fail to materialise then this compounds losses from a slow summer-time, he added.
The summer-time results have been realised and airlines can assess if mid-term strategies to reverse last year’s poor results are working.
If not the forecast trade deficit will allow evaluation of what action needs to be taken, if any options are left.
by Phil Davies
Phil Davies
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