Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 18th of July 2018
August 25, 2009

Travellers fearful of airlines’ balance sheets

by Gill Montia

Story link: Travellers fearful of airlines’ balance sheets

International Passenger Protection (IPP), which operates the ProtectMyHoliday.com brand, has reported a sharp increase in demand for protection against the failure of established “legacy” carriers, such as British Airways.

The firm, which offers protection in the event of insolvency, has published a risk exposure snapshot, as at 17th August, as follows:

British Airways came top with over 20% of the total sum insured against the airline; Virgin Atlantic second with 12%; and Jet 2 third with 11% of the total volume.

IPP sales and marketing manager, Michael Ward, says: “Historically demand has been highest for budget airlines and lesser known carriers.”

He adds: “At the start of the year someone booking with a legacy or blue chip airline would be unlikely to have felt the need for protection whereas now the general public’s perception is that any airline or travel supplier may fail.”

The impact of the credit crisis on low cost airlines such as Icelandic carrier, Sterling, was clearly seen last year when the Association of British Travel Agents advised independent travellers to take out financial failure insurance, or run the risk of being stranded overseas with no comeback or compensation.

 

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