AA Travel Insurance warns consumers of airline failure

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AA Travel Insurance warns consumers of airline failure

AA Travel Insurance has advised travellers to be careful when they book their holidays as more than 50 travel firms have collapsed in the past year.

Chief executive of the organisation Christian Young pointed out that people will currently be given protection against a collapsed airline if they have a package which includes travel and one other part of their holiday.

This cover usually comes from the Air Travel Organisers' Licence.

However, Mr Young noted that the majority of travellers will book each element of their holiday separately, so they will not qualify for this protection.

He explained: "They could lose a lot of money - to say nothing of having their travel plans dashed - if they find themselves stranded because of such a failure."

Mr Young also highlighted how AA Travel Insurance will cover customers in the case of an airline going bust.

The organisation announced this addition to their standard cover in July.

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