More airline failures forecast amid record fuel costs and credit crunch
14.04.08
A warning of further airline collapses came today in the wake of nine failures so far this year. This compares to five in the whole of 2007.
Default and insolvency insurance supplier International Passenger Protection says it has been inundated with calls from travel agents and online travel companies who have suffered losses from the failure of carriers like MAXjet, ATA, Aloha Airlines and Oasis Airlines Hong Kong. Reports indicate around 30,000 passengers are out of pocket. In addition Denver-based Frontier Airlines filed for Chapter 11 bankruptcy protection last week but operations are continuing.
IPP director Paul Mclean said: ‘There are many factors putting pressure on an airlines finances at the moment. The current credit crunch and highest ever oil prices are reversing the hard efforts of many airlines who went back into profit after deep cost cutting exercises following 9/11.'
‘Unfortunately we expect several other airlines to suffer difficulties during this current period. We are certainly seeing a dramatic increase in requests from travel industry to protect not only their customers but themselves with insurance covering airline bankruptcy, simply because they have learned the hard way by losing money on these latest airline casualties.'
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