Daily Insurance Industry News
Daily Insurance Industry News
Tuesday 17th of July 2018
October 29, 2008

ABTA advocates airline policy for independent travellers

by Gill Montia

Story link: ABTA advocates airline policy for independent travellers

Travel association, ABTA, has responded to the collapse of Sterling Airlines A/S, the Icelandic-owned carrier, by calling once again for Government action to ensure that all airlines provide financial protection for their customers.

Sterling, which is a low-cost operation based in Denmark, has stated that it is filing for bankruptcy today and is unable to provide any refunds.

Travellers who have booked seats through an ABTA Member, as part of a package holiday, are fully protected under the Package Travel Regulations.

However, independent travellers who have not purchased a scheduled airline financial insurance policy will not be protected in this way and will have to buy further tickets.

ABTA’s chief executive, Mark Tanzer, warns that in a tough economic climate with numerous airline failures this year it is important to have financial protection in place when flights are booked.

Sterling A/S flew from Gatwick, providing services to Denmark and Sweden.

The company, which is owned by Northern Travel Holdings, says it has been unable to raise the financial support it needs since the collapse of the Icelandic banking system.


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