WHAT WILL HAPPEN IF AIRLINE GOES BUST?

Q What’s gone wrong with Monarch?

A Britain’s fifth-biggest carrier was already limping along a year ago, but was saved in a £165 million bailout by investment firm Greybull Capital. A weaker post-Brexit pound drove up costs and at the same time put many people off foreign travel, placing strain on the firm.

Q We bought our package holiday through Monarch – are we protected?

A Yes, though only about 5 per cent of Monarch’s business comes under the Governmentbacked Atol protection scheme that covers package holidays. If you’re abroad, other flights will be provided. If you’re still in the UK, you’ll get a full refund.

Q What if we bought only flights from Monarch?

A It is unlikely Atol will cover you, but if you booked flights using a credit card (or Visa debit card) and the cost is more than £100, the card issuer is liable and you can apply for a refund.

A But how will we get home?

A In the past, when airlines failed, other carriers stepped in with discount fares to help get flyers home. Whether you are reimbursed for that extra outlay is likely to depend on your travel insurance.

Q What should I look out for in an insurance policy?

A Some policies offer cover for the failure of an airline or tour operator, referred to as Scheduled Airline Failure Insurance (SAFI). It will cost extra, but will provide peace of mind.

Q I see Monarch is still offering some good deals online – should I take one?

A Provided that the holiday or flight is either Atol-protected, bought with a credit or Visa debit card or is covered by a SAFI clause in your travel insurance and you don’t mind the possibility of extra hassle at the end of your holiday, it could be worth the risk.