International Passenger Protection Warns of Airline Crunch

Released on: April 18, 2008, 12:44 am

Press Release Author: Paul Mclean

Industry: Aerospace

Press Release Summary: International Passenger Protection (IPP), the largest
supplier of default and insolvency insurance to the travel industry warned of
further airline collapses today after 9 airlines have already collapsed in the first
4 months of 2008 compared to 5 in the whole of 2007.

Press Release Body: West Wickham, Kent, April 18, 2008 -- IPP's director Paul Mclean
said there are many factors that can put pressure on an airlines finances and at the
moment the current credit crunch and highest ever oil prices are simply reversing
the hard efforts of many airlines whom went back into profit after costing cutting
exercises subsequent to September 11th. Unfortunately we expect several other
airlines to come into the same difficulties during this difficult period.

Paul Mclean went onto say that they have been inundated with calls from travel
agents and online travel companies who have suffered losses from not only carriers
like MaxJet, ATA and Aloha Airlines but more so from Oasis Airlines Hong Kong flying
between London Hong Kong and Vancouver where reports indicate around 30,000
passengers are out of pocket. Luckily ABTA travel agents are offering their
customers the benefit of the ABTA Protection Plan to cover Airline bankruptcy plus
of course any other end supplier of the travel itinerary. There are also an
increasing number of Travel Insurance policies that are also now covering airline

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 sadly learned the hard way by losing money on
these latest airline casualties. The oil and credit crunch factors highlight the
increasing reasons that cause bankruptcy in airline market and of course we should
not ignore the other sectors of the travel industry that are also under great

News reports state that Frontier Airlines filed for Chapter 11 bankruptcy late
Thursday. Frontier blamed the action on an \"unexpected attempt by its principal
credit card processor to substantially increase a \'holdback\' of customer receipts,
which threatened to severely impact the airline\'s liquidity.\"
Press Release Distribution By PressReleasePoint(

Paul Mclean
International Passenger Protection (IP )
West Wickham, Kent
United Kingdom
+44 222 656

Web Site:

Contact Details: Paul Mclean
International Passenger Protection (IP )
West Wickham, Kent
United Kingdom
+44 222 656

  • Printer Friendly Format
  • Back to previous page...
  • Back to home page...
  • Submit your press releases...