Thousands of Aussie travellers are anticipated to contact their travel insurance providers soon - if they haven’t already - after a Singapore-based budget airline was forced to cancel all its Australian flights to Bali.
Tigerair Australia said Indonesian authorities required an alternative regulatory solution from the company for it to be able to continue its operations in Bali - a new operating model that would take it at least six months to comply with and would compromise its ability to offer passengers low-cost airfares to Bali.
“As a result of this development, Tigerair Australia has today made the difficult decision to withdraw from flying between Australia and Bali permanently, effective immediately [February 03, 2017],” Tigerair CEO Rob Sharp said to news.com.au.
“We sincerely apologise to customers for the inconvenience caused by this situation and we will continue to work around the clock to support customers during this time.”
Tigerair said it will contact and fully refund customers who were booked to travel from Australia to Bali with Tigerair from February 03 onwards. Customers already in Bali, on the other hand, will be contacted and offered re-accommodation options on Virgin Australia and other airlines, the report said.
Finder.com.au’s Bessie Hassan said Tigerair’s troubles demonstrate the importance of travel insurance, and knowing what consumers are covered for.
“As this is an airline issue, travel insurance won’t cover the cancelled flights. However, your insurance policy may cover your cancelled accommodation and tour costs, provided you purchased travel insurance before flights were suspended,” she told the publication.
“If you are planning on booking a trip, it’s best to book in your travel insurance sooner rather than later. Travel insurance will only help if you’ve purchased it before an incident or issue crops up.
“Airline operating disputes are often contentious but there are a few areas where insurers may cover some expenses as a result of cancellations, delays or scheduling issues.”
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