Media Release

Travellers must brace for flight losses

  • Losses gripping Australia’s aviation industry
  • Cancelled flights, redundancies and delays expected to impact holiday­-goers
  •­insurance urges travellers to compare travel insurance before taking off!

March 6, 2014, Sydney – Australian travellers are being warned by one of Australia’s biggest
comparison websites­insurance to make sure they have travel insurance
when booking flights in the face of an industry crisis.

Following from Qantas’ reported troubles and the news of Virgin Australia’s $84 million half­year
loss, passengers face bearing the cost of interrupted flights due to the volatile conditions.
Michelle Hutchison, Money Expert and­insurance, said cancellation of
services and strike actions were just some of the possible implications for travellers.

“The Australian aviation market continues to be troubled amid job cuts and reduced services and
passengers could be left in jeopardy.

“We are only witnessing the first wave of cuts, things are going to get worse before they get
better,” she said.

In the face of Qantas’ $2 billion cost reduction strategy, with 5,000 jobs to go and over 50 aircraft
to be pulled from the fleet, many travellers are left worried about their holiday plans.

“Qantas’ struggles are hardly unique. A lot of great airlines globally have been in the same
position,” said Mrs Hutchison.

“The crisis gripping the industry should be a timely reminder for all travellers to consider travel
insurance or face risking cost blowouts. Reduction in routes, cancellations and delays could
become much more common, and compensation offered by the airlines is often not good

Mrs Hutchison urged travellers to compare travel insurance online.

“A full benefit will be paid if the events that lead to a flight being cancelled are out of the
policyholders control. If a flight was cancelled because an airline went on strike or went bankrupt
that would definitely be covered by providers.

“If you’re planning your next holiday, it’s not worth the risk to leave without comparing travel


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