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Package Travel Directive

EU to review Package Travel Directive

Nov 26, 2009

The Consumer Commission of the European Union is launching a review of the financial protection available to travelers who book flights direct with an airline.

Currently, only those who have booked through a travel agent or taken out independent financial failure insurance are covered for the cost of a new flight if their carrier goes bust.

However, with the airline industry under pressure, the Commission is to consider whether the existing Package Travel Directive can be extended to cover independent travellers.

The consultation period closes in January of next year and the Commission expects to publish proposals for a revised directive in the autumn.

Earlier this month warned travellers to be cautious about Christmas holiday arrangement, as the travel industry continues to face large losses.

According to the travel failure specialist, the International Air Transport Association recently predicted that the global airline industry will make a cumulative loss of €11 billion this year, a steep increase on the €9 billion estimated in 2008.

However, the firm reckons that over half the travellers leaving the UK during this year’s festive season will be without financial protection, despite the last two Christmases having seen a airline collapses.

EU to review Package Travel Directive
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