ProtectMyHoliday.com, an online firm offering financial protection, is warning of possible major travel operator failures in the coming year as the industry sees cash reserves run out.
The company’s warning came as SkyEurope Airlines filed for protection from creditors on Monday, while restructuring its debt.
In 2008, the airline industry experienced the largest losses in its history, with the collapse of more than 50 airlines – many being smaller and medium-sized carriers – in addition to XL Airways and South Africa’s Nationwide.
With no firm end in sight to the current credit crunch, major airlines that have been reliant on cash are running out of time, according to the online travel insurer.
Paul Mclean, the director of protectmyholiday.com, said: “This has become a normal day at the office, but companies such as SkyEurope just cannot continue to hemorrhage money, sadly there will be others. Consumers have read about many large corporate failures in many industries over the last 12 months demonstrating that no company is exempt from failure.”
He added: “Airlines and other sectors of the travel industry simply cannot continue with the spiraling events affecting their business, from the credit crunch already crippling their financial suppliers to the large drop in demand for travel.”
Thanks to www.travelmole.com for the above quotes, for more information on this article please visit their website.