INSURANCE GUIDE
Scheduled Airline Failure Insurance UK
What SAFI covers, how it differs from ATOL protection, and when it pays out for airline insolvency.
TL;DR
- SAFI covers the cost of a replacement flight if your airline becomes insolvent before or during your trip.
- ATOL protection covers package holidays purchased from licensed tour operators - SAFI covers flights booked separately.
- Flights booked directly with the airline rather than through a tour operator are not covered by ATOL - SAFI fills this gap.
- Most comprehensive travel insurance policies include SAFI cover as a standard feature - check the policy schedule.
What Is SAFI?
Scheduled Airline Failure Insurance (SAFI) covers you if the airline you have booked with ceases trading - either before your trip departs or while you are abroad. If the airline fails, SAFI reimburses the cost of a replacement flight home (if stranded abroad) or compensates you for the cost of the original flight (if the airline fails before departure and no comparable replacement can be found at comparable cost). SAFI is typically included within comprehensive travel insurance policies.
How SAFI Differs from ATOL
ATOL (Air Travel Organiser's Licence) is a statutory protection scheme operated by the Civil Aviation Authority for package holidays and flight-inclusive holidays booked through licensed tour operators. If your tour operator fails, ATOL guarantees either a replacement holiday or a full refund. ATOL does not cover flights booked directly with an airline on a standalone basis - that is the gap that SAFI fills. If you book a flight directly with an airline and accommodation separately, you are not in a package and ATOL does not apply.
When SAFI Pays Out
SAFI pays when the airline you have booked with enters administration or ceases commercial operations and is unable to operate your flights. It typically covers: the cost of a replacement flight to your destination if the airline fails before departure; the cost of a flight home if the airline fails while you are abroad; and reasonable additional accommodation costs incurred while arranging the replacement flight. It does not cover cancelled or delayed individual flights where the airline continues to operate.
Credit Card Protection
Section 75 of the Consumer Credit Act 1974 makes a credit card company jointly liable with the merchant for purchases over £100. If you book a flight costing over £100 on a credit card and the airline fails, you can make a Section 75 claim against the credit card company for the cost of the flight. This provides an additional layer of protection alongside or instead of SAFI for flights booked directly with airlines.
Related Guides
Disclaimer
This guide is for general information only and does not constitute financial or insurance advice. Kaeltripton.com is not regulated by the FCA. Always read policy documents in full before purchasing cover.
Frequently Asked Questions
Does SAFI cover budget airline failures?
SAFI covers scheduled airline failures regardless of whether the airline is a legacy carrier or a low-cost carrier. The cover applies whenever the airline ceases trading and cannot operate your booked flight. The cost of the replacement flight covered is typically capped at the original ticket cost or the reasonable cost of a comparable replacement.
Is SAFI included in all travel insurance policies?
Most comprehensive travel insurance policies include SAFI as standard. Basic or budget travel insurance policies may omit it. Check the policy schedule or summary of cover for a specific reference to scheduled airline failure cover. If it is not included and you are flying with an airline that may face financial difficulty, it can sometimes be added as an optional extension.
