ANALYSIS:Growing turbulence in aviation means passengers need to be more careful than ever when making travel plans, writes Paul Cullen
MORE THAN 30 airlines have gone bust so far this year and, in Ireland alone, three tour operators have gone out of business in recent months.
After an extended period of rapid growth and plummeting fares, the aviation business has entered a zone of turbulence and passengers may be in for a bumpy ride. Indeed some, such as the customers of Zoom, already are.
Soaring fuel prices are the main reason so many airlines and tour companies are in trouble.
Fuel surcharges, increased fares and other charges have helped raise badly-needed extra revenue, but these have in turn driven customers away, causing even more problems.
Michael O'Leary, Willie Walsh and many other aviation experts say these difficulties are not going to disappear and more airlines are likely to bite the dust, so passengers should be careful to minimise their exposure to any problems that could arise.
As the Irish Travel Agents' Association was quick to point out yesterday following the collapse of Zoom, most consumers don't realise that their money is not protected when they book directly with an airline.
This is in contrast to the situation with tour operators, which are bonded with the Commission for Aviation Regulation.
Thus, in the case of the Mayo-based tour operator Ronane Travel, trading as Great Escapes, which also collapsed this week, industry funds were available to bring people home at the end of their holidays and to provide full refunds for those with future bookings.
The directors of Ronane Travel, Sean and Patricia Ronane, said return flights for their customers were being fully honoured and customers who had not yet travelled would be entitled to a refund.
Most passengers who booked directly with Zoom, a UK/Canadian operation, will not be able to get their money back. However, package holidaymakers using Zoom flights will be covered by a UK licensing scheme for tour operators.
In addition, if a consumer buys tickets with a credit card, it is likely to be protected under consumer credit legislation.
The situation with flights purchased with a debit card is less clear, but Zoom customers are being advised to seek recompense anyway.
"If you pay for your flight with a credit card or book it as part of a package holiday then you shouldn't have any problems getting your money back," says Espe Fuentes, legal adviser with the UK consumer body, Which.
"You may even be covered by your travel insurance as some policies cover scheduled flights. Sadly, if these don't apply to you there's little hope of you seeing your money again so bear this in mind when you book your next flight or renew your travel policy."
The advice for consumers worried that the problems in the aviation industry might affect their travel bookings is to fly with established carriers or book holidays through established tour operators. Large firms are more likely to have the resources to deal with the challenges caused by rising fuel costs.
If you do decide to invest in travel insurance, make sure to read the conditions beforehand to see what cover is provided.