The OTA, which also traded as A1 Travel, is understood to have been stung by its failure to have Scheduled Airline Failure Insurance (Safi) in place, with one expert source describing the Monarch collapse as “the last straw” for Chadwell. But while industry experts insist further failures as a direct result of Monarch’s collapse are unlikely (Chadwell Travel is thought to have been an anomaly in not having Safi), the news of A1 Travel’s collapse could still ring alarm bells for some.
In particular, there may be a significant financial impact for those who had only basic Safi policies in place. Insurance specialist Lawrence Assock told TTG Safi claims for Monarch are expected to total “in the millions” but that only a handful of his clients had complete supplier failure insurance, meaning only a few will see the full amount for rebooked flights refunded.
Instead, Assock said most clients had a basic policy (refunding just the original flight price), leaving many agents and operators potentially facing hefty bills to cover the costs of rebooking their customers. The Association of Atol Companies even reported that one travel company, which had £70,000-worth of bookings with Monarch flights, was only covered for up to £12,000 under their basic policy.
And all the while, the industry is still awaiting details of how – and if – the Department for Transport will expect them to foot the estimated £60 million bill for the government’s Monarch repatriation efforts. As TTG went to press, Abta confirmed that no companies had yet received any information from the government regarding the £250 per passenger costs which the DfT is rumoured to be intending to claim from the industry.
All of which suggests the Monarch story – and its many repercussions – is set to reign for many months to come.
