ST. PETERSBURG, FL August 27, 2012 – The bankruptcy of Wind Jet, a Sicily-based air carrier, has left hundreds of airline passengers stranded during Italy’s peak travel period. Many expected that European Airline, Atalia, would purchase the struggling carrier. However, negotiations fell through after Wind Jet failed to disclose requested financial records.
Italy’s aviation authority is working to arrange substitute flights for travelers with tickets for the defunct airline. Unfortunately, travelers will be required to pay additional fees or even purchase new tickets entirely in order to secure alternative flights. Other travelers remain scattered across Europe with no assistance at all.
The effects of Wind Jet’s failure will linger, as over 300,000 advanced tickets were sold through October of this year.
According to travel insurance comparison site, Squaremouth.com, this situation is a prime example of when it pays to have travel insurance. Because the collapse of Wind Jet was unexpected, travelers carrying insurance with financial default benefits may be able claim additional transportation costs incurred.
“The stipulation with financial default coverage is that policies must be purchased while the default or bankruptcy remains unforeseen,” explains Chris Harvey, CEO of Squaremouth. Had Wind Jet been acquired by Atalia as anticipated, flights would have continued as scheduled. Since the acquisition fell through, all operations were unexpectedly suspended.
Harvey stresses that the key to travel insurance is to purchase early. “Benefits for financial default will not pay out on policies purchased after a common carrier begins to show signs of default.” Tickets must also be purchased while the event is unforeseen. If a traveler has purchased insurance in advance, and later buys tickets with a carrier that shows signs of failure, it is unlikely that the insurance will pay out.
It is imperative to read coverage information carefully, as financial default benefits are not included in many travel insurance policies. On Squaremouth’s website, travelers can filter searches based on specific benefits for over 250 policies.
With the current instability of the global economy, it is difficult to forecast the failure of a company. Wind Jet’s default is a reminder that travel insurance may be a nominal expense compared to costs associated with a common carrier failure.
Squaremouth is America’s fastest growing travel insurance comparison site, helping customers instantly quote, compare and buy policies from every major provider. Squaremouth has an extensive network of partner sites worldwide. The company is headquartered in St. Petersburg, FL., with offices in Fort Wayne, IN. For more information, visit www.squaremouth.com.
About our Zero Complaint Guarantee
The cornerstone of our commitment to customers is Squaremouth’s guarantee to remove any company from our website if there is a customer complaint that cannot be resolved to our satisfaction. Squaremouth offers the broadest selection of insurance with an emphasis on quality and follow-up care in companies featured. We also factor in independent evaluation from the insurance industry watchdog AM Best.
AVAILABLE TOPIC EXPERTS:
Toll-free (800) 240-0369 x 6103
Direct (727) 490-5802
Toll-free (800) 240-0369 x 6106
Direct (727) 498-2868