Flight Centre lifts stop-sell on SAA tickets

Its preferred travel insurance provider has reinstated cover to SAA, effective immediately.

Martin Kingston says the business rescue practitioners have assumed the responsibilities of the board and that he will continue to ‘assist and provide input as required’. Image: Moneyweb

Travel group Flight Centre has announced its decision to lift its stop-sell on South African Airways (SAA) tickets after two months.

This after its travel insurance provider and others were no longer willing to cover the airline.

It said in a statement at the time: “Over the last month there have been several publications in the media regarding ongoing concerns in respect of the financial stability of South African Airways (SAA). On 27 November 2019, we were informed that our preferred Travel Insurance Provider, namely Travel Insurance Consultants (TIC) and their underwriters, are no longer willing to cover SAA under their Travel Supplier Insolvency benefit, due to doubts concerning the long-term viability of the airline. We have been advised further that a number of other global insurers have taken a similar approach.”

The travel group, however, left SAA open as an option to customers who still wanted to travel with the airline, though it “strongly” advised using other alternatives “until certainty regarding the airline’s long-term sustainability is obtained”.

Now it has made a U-turn on its decision following reports that its preferred travel insurance provider, Travel Insurance Consultants (TIC), will reinstate cover to SAA under their Travel Supplier Insolvency cover effective immediately.

“In light of the above development, Flight Centre Travel Group has reviewed its position, stated on 28 November 2019, and has decided to lift its stop-sell on SAA,” it said.

The group’s owned brands –  Flight Centre Travel Group, FCM Travel Solutions, Corporate Traveller, Flight Centre Business Travel, Cruiseabout, and Flight Centre Associates – will now start selling SAA tickets to its customers.