AGENTS are advising customers to take out scheduled airline failure
insurance for the first time as more carriers find themselves in trouble following
the US attacks.
Staff at Lunn Poly’s 800 shops have been told to offer the
insurance on scheduled flights to protect customers if an airline goes
bankrupt. Other agents have also been offering insurance, but for £2 rather
than the previous £1 charge in the belief insurers will now put the premiums
up.
ABTA chief executive Ian Reynolds said there was now even
more of a need for a worldwide system to offer client protection if airlines go
under.
“It’s the important missing piece for consumers, but
airlines are reluctant because they feel there is no risk of going bust,” said
Reynolds.
The association has been lobbying the Government for an industry-wide
policy since the fall of Air Europe in 1991.