7 Feb, 2012
Distribution Specialist Demands Protection for Passengers Against Airline Insolvency
DREIEICH, Germany Feb 2, 2012 (Business Wire)–Hahn Air is demanding the introduction of a protection mechanism for passengers against airline insolvency. In future, only airlines with comprehensive insurance coverage should be allowed to sell through travel agencies in Europe. “Furthermore, travel agencies have to face unnecessary risks due to the outdated programming of global distribution systems that dictate the selection of a contractual ticketing carrier.”
Recent events once again show the alarming practice which has uncontrollably established itself within the airline industry: paying for flight tickets, sometimes up to a year before delivery of the goods (flight), without any protection for the payment made.
Currently, there are no mandatory security precautions in place to protect customers, even though reliable protection mechanisms could be implemented without any major efforts, at least for ticket sales through IATA-licensed travel agencies.
The industry itself has not yet made any serious efforts to allow only solvent, adequately insured airlines to participate in their global distribution systems. The airline industry is now being called upon to take action and devise appropriate solutions.
“It is unacceptable that travel agencies have to provide surety, sometimes as high as seven-figure sums, to airlines (or their umbrella organisation IATA), but are not offered any protection in return for themselves or their customers against the consequences of the bankruptcy of their business partners,” says Katharina Becker, Director Legal Department Hahn Air. “Furthermore, travel agencies have to face unnecessary risks due to the outdated programming of global distribution systems that dictate the selection of a contractual ticketing carrier.”
Hahn Air is demanding that in future only airlines that guarantee free comprehensive insurance coverage against the consequences of their possible insolvency should be allowed to sell through travel agencies in Europe.
The online booking market (i.e. where consumers book on the Internet without involving a travel agency) is impossible to regulate in practice. Such bookings often entail considerable risks for consumers. Generally, they have no knowledge of the financial stability of an airline to which they entrust their money, sometimes months in advance.
Therefore, consumers can either take the risk of booking directly on the Internet or in future obtain extensive protection by having their tickets issued through a travel agency.
Hahn Air operates a universal ticketing platform with more than 250 partner airlines. Hahn Air tickets are 100% insured against insolvency and available in all GDS. The company cooperates with 88,000 travel agencies in 190 markets. www.hahnair.com
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