Airline warning for travellers

Travellers have been warned about being left out of pocket if airlines go bust following XL Airways’ announcement that it’s going into administration.

The airline’s parent company XL Leisure Group has called in the administrators, leaving thousands of people stranded after all flights were grounded.

As with the recent collapse of Zoom Airlines, passengers who’ve booked flights with XL Airways directly and paid by debit card will not receive a refund.

Passengers who paid for flights using a credit card can claim a refund from their card company. However, passengers will need to book new flights with another airline, potentially costing them more.

Only passengers who've booked flights and/or accommodation with XL Leisure or another tour operator or who have a travel insurance policy which covers airlines or tour operators going bust are fully protected. The Association of Independent Tour Operators (AITO) has attacked the UK Government for not bringing airlines under the Air Travel Organisers’ Licensing (ATOL) bonding.

This is a fund that protects passengers travelling with accredited tour operators should an operator or airline go bust.

Derek Moore, AITO Chairman, commented: “We have long warned of the likely implications of the Government allowing a two-tier industry to exist, and here we have a prime example of what happens when things go wrong.”

Although many airlines now add an extra cost for booking by credit card, it does mean you’ll get a refund if an airline runs into trouble.Booking flights and accommodation via a fully-bonded tour operator will ensure you’re fully covered if something goes wrong.

Or you can protect yourself via your travel insurance. The Post Office and Marks & Spencer’s annual travel insurance policies and Axa’s independent travellers’ cover will pay out if an airline goes bust.
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