Maybe US airlines Skybus, ATA and Aloha read my blog post on cheap flights being extinct by 2012, panicked and went bankrupt. Joking aside, it’s a worrying trend that hopefully won’t continue over here in Europe, not because we’ll loose our cheap flights, but because of the impact it will have on independent travellers.

There is a misconception that if you book directly with an airline then you are automatically covered if it goes bust, but it might be worrying for independent travellers to learn that you are only covered if you book by credit card and if the money is taken inside the UK.

It’s advisable to take out adequate travel insurance, either single trip or annual as soon as you have booked your flight and accommodation. Check the small print carefully as some policies may not pay out for everything you would expect them to.

Finally..

If you are booking through a travel agency rather than an airline, check that the company has the ATOL symbol on it’s website. Remember that whilst booking through an ATOL member will cover you if the airline goes bust, it won’t guarantee you an alternative flight.

Useful links:

Financial Protection for Air Holidays
International Airline Passengers Association
European Low-fare Airlines Association
European Airlines Association
European Commission: Transport

As usual if you have any questions or issues with booking flights please leave them in the comments.

Update: News that Oasis Hong Kong Airlines have gone into liquidation

• Oasis Hong Kong Airlines Booking Launch
• It won’t be a cheap holiday if it’s a Scam
• Unpacking a package holiday booking nightmare
• Air passenger Q&A guide to bankrupt airline protection

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