Monday, 3 July 2017

How safe (Financially) are No Frills airlines

Don't forget financial protection on your next trip.
It's not widely known that No Frills airlines do not have any financial protection,  If an airline goes bust then you loose your money unless you paid by a Credit card to a UK based merchant provider where you will be covered by the 1973 Consumer credit act if your purchase was more than £100.

You can take out insurance SAFI (Scheduled Airline Financial Insurance)  which is in-expensive or may be included in your travel insurance policy cover.

In reality the likes of EasyJet, Ryanair and others who are large publicly quoted companies won't go bust, but smaller companies some based overseas are always at risk. in recent history a British No Frills company nearly went bust and had  the CAA intervening to ensure that solutions were put in place (EG extra working capital from new investors)

In the UK Tour Operators have to have ATOL licenses which means your travel arrangements are covered by the CAA and any repayments ultimately come from the Air Travel Trust Fund which is underwritten by the British Government. 

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