More gloom post-Zoom?

2008-09-05

You'd be wise to keep a close eye on budget airlines after the collapse of Zoom, the carrier which went bust last week leaving thousands of passengers stranded.

Soaring oil prices, poor sales for Zoom – despite the company battling to keep transatlantic fares lower than the competition - and a weak economy has created a crisis for airlines, with more than 27 airlines filing for bankruptcy this year.

So being wary is only prudent. If you've made sure you've got a great deal on airport parking with APH, you are probably the type of person who travels properly.

It goes without saying that travel insurance is a must – but check that your policy covers problems with the airline. Many don't.

Purchase tickets with a credit or debit card,and most reputable card providers will provide payment insurance, which means, should things go wrong, you will at least be able to claim your money back.

Now European carrier Alitalia is seeking bankruptcy protection status (which Zoom couldn't get), and it seems certain that as demand for flights naturally declines over winter we will see more airlines get into difficulties. Inevitably, the price of flying will rise – so if a bargain flight price catches your eye – be very careful, if it seems too good to be true, it probably is, and you may end up on one-way flight.