Air Company Insolvencies - Are You Protected?

Air Company Insolvencies – Are You Protected?

In the UK flight companies must retain the “Air Travel Organiser’s Licence” (ATOL); a license that is certainly managed through the CAA. ATOL is often a financial guarantee that delivers the funds to safeguard customers should an airline company fail. ATOL primarily covers air travel nevertheless it can extend to holiday accommodation if bought included in a package. The degree of ATOL protection is dictated through your travel company so your first move must be to check your invoice for that ATOL logo and see the terms of the ATOL agreement to determine the level of financial protection you might have.

UK based airlines are not protected by ATOL. Insurance and the nature with the insolvency usually dictate how much compensation you will get from airline insolvency. Airline operators that offer “flights+hotel” are typically not protected by ATOL unless they have a partnership with the flight’s company. So what level of protection is in spot for airlines? In the event of delays and cancellations, European law requires airlines to organize alternative flights and to offer reimbursement for refreshments, communications, and accommodation in the case of prolonged delays and overnight stays. However, the same coverage doesn’t extend to airline insolvencies.

So what cover do you’ve if an airline goes bust?

If you took care of your holiday simply by using a bank card and the payment was over 100 you are protected from the UK Consumer Credit Act. This gives you the ability to cancel the payment going to the airline via your accredited bank. Also, some holiday insurance companies offer airline insolvency protection – that is subject to the terms from the insurance, therefore, you must look and check along with your insurer.

As mentioned earlier on ATOL doesn’t cover additional bookings which can be made outside in the package …

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