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Easyjet Insures Against Collapse

Low-cost airline, Easyjet has switched financial protection for its package holidays from the Travel Trust Association to an insurance-based scheme with International Passenger Protection (IPP).

Easyjet is the first low-cost airline to take IPP up on the scheme which will protect its package holiday customers in the event of Easyjet going out of business.

The new policy agrees to pay out on package holidays in a number of circumstances including the airline going into administration, liquidation or being unable to pay its debts.

The insurance is provided automatically, and at no extra cost to the customer, it only covers package holidays though and those buying flight only deals with Easyjet will not be covered, however other insurance policies are available.

This new insurance policy should be reassuring to Easyjet customers following the collapse of many major tour operators and flight providers within the last year. Just before Christmas Scottish operator Globespan collapsed leaving hundreds stranded abroad and even more out of pocket. Turkish specialist Goldtrail also failed earlier this year with thousands of customers losing their holidays.

Easyjet have also pulled all flights from Doncaster Robin Hood, only eight months after starting flights from the South Yorkshire airport.

Its flights to Faro, Barcelona and Amsterdam will continue until January, those to Prague will cease at the end of December, and those to Palma will stop at the end of October.