FlyGlobespan holidays protected by Scheduled Airline Failure Insurance
Scheduled Airline Failure Insurance has paid out more than £400,000 following the collapse of Glasgow-based travel firm FlyGlobespan.
As many of its customers were travelling on flight-only deals, they might have lost their money if they had not had the protection of Scheduled Airline Failure Insurance.
The company's administrators have confirmed that only those who bought package holidays from the company are eligible to refunds from FlyGlobespan's Air Operators Licence.
The only financial protection for those who buy flights direct from an airline is to pay with a credit or Visa debit card, or to buy Scheduled Airline Failure Insurance.
The insurance, which is sold in addition to travel insurance, was also used by travel agents who bundled together FlyGlobespan flights with accommodation on behalf of their customers.
A travel industry source said that without Scheduled Airline Failure Insurance, some of the travel agents would have suffered a significant financial loss. Some may even have been dragged under by the FlyGlobespan failure, leaving their customers out of pocket.
Although travel companies selling flight-based packages must be licensed with the Civil Aviation Authority (CAA), it can take months for the CAA to settle claims following a company failure.
The Globespan Group, which sold packages and flights, collapsed before Christmas and already Scheduled Airline Failure Insurance has paid out more than £400,000.
Customers who have still to make a claim under their Scheduled Airline Failure Insurance and need proof of the company's failure can download the relevant documents at www.flyglobespan.com.