Call for travellers to get insurance against airline failure

Travellers are urged to take out insurance against airline insolvency.

Travel Insurance News - 29/07/2010

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A new study has found that a perilously small fraction of travellers consider the risk of an airline failing when booking travel. Ipsos Mori surveyed 2,072 people. Only five of the people polled – less than a quarter of one per cent – said they thought insolvency of an airline was a consideration when booking a holiday. This is despite the fact that 65 airlines have gone out of business since the recession began and the aviation industry, if anything, is under greater pressure than ever before.

Despite the worrying lack of concern about the risk of airline insolvencies, an encouragingly large fraction of people questioned were aware of the details of their travel insurance policies. Two-thirds of respondents knew whether or not their policies offered financial protection. They stated clearly that such coverage was a key factor for them when shopping for travel insurance.

Ipsos Mori conducted the study in March at the request of the Air Transport Users Council (AUC). In the survey, people were asked about their experiences booking tickets online. Online air bookings generally are not covered by the protection offered by the Air Travel Operators’ Licence (ATOL).

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