Direct Line will cover for collapse of airlines

Fri, 18 Dec 2009

Direct Line has stated that its travel insurance policies will cover passengers if their airline goes bust while they are on holiday .

As a result of the collapse of Flyglobespan, the insurance provider has announced it will cover any financial loss sustained by passengers should the carrier go out of business. In addition, their insurance policies will cover the failure of car rental companies, hotels, excursion providers and even theme parks .

Jennifer Thomas, spokesperson for Direct Line travel insurance, commented that many consumers are looking to get their flights directly from the airline in order to try and save money . She said: "Holidaymakers are understandably looking to spend less on travel these days, and booking directly with airlines and hotels can be a good way of getting more while spending less."

However, this means that they are not covered by protection schemes such as ATOL, so they would have to foot the bill for flights home themselves if there is a problem with the airline.
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