Insurer warns consumers of airline failure

AA Travel Insurance is warning travellers to be careful when they book their holidays as over 50 travel firms have collapsed in the past year.

Chief executive of the organisation, Christian Young, indicated that people will currently be given protection against a collapsed airline if they have a package which includes travel and one other part of their holiday . This cover usually comes from the Air Travel Organisers Licence .

However, Mr Young pointed out that the majority of travellers tend to book each aspect of their holiday separately, so they will not qualify for this protection. He explained: “They could lose a lot of money, to say nothing of having their travel plans dashed if they find themselves stranded because of such a failure.”

Mr Young also stated that AA Travel Insurance will cover customers in the case of an airline going bust. This addition to their standard cover was announced by the organisation in July.

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