Make sure you're covered if an airline goes bust

11 Jan 2010

Groups heading to Europe for a stag do this summer need not be anxious about their airline company going bust, as there are options available to cover you financially from this unlikely scenario.

Scottish firm Flyglobespan went bust in December, while bookmakers have been lowering odds on Monach being the next airline to go to the wall as the difficult financial times take their toll on the airline industry.

However, if you are going on a Riga stag weekend, for example, you don't have to lose out if your airline gives up the ghost at the wrong time. If you book through a tour operator they must have an ATOL (Air Travel Organiser’s Licence) and will cover you financial and help you to get home.

If you book directly with the airline you will not be automatically covered by an ATOL, however, if you book by credit card you should be covered, although check your credit company for confirmation.

Finally, you can also take out extra travel insurance to provide coverage for this eventuality, although this is not always covered automatically.


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