Here's why Flight Centre lifted its ‘stop-sale’ on SAA
Flight Centre Travel Group’s Travel Insurance Consultants (TIC), has announced it will reinstate cover to South African Airways (SAA) under their Travel Supplier Insolvency cover, effective immediately.
Flight Centre said in a letter to clients dated November 28 stated that its preferred travel insurance provider and their underwriters were no longer willing to cover SAA under their Travel Supplier Insolvency benefit "due to doubts concerning to long-term viability of the airline".
The travel company said in a letter at the time: “In light of the above developments and continuing concerns regarding SAA, Flight Centre Travel Group South Africa has made a decision to no longer sell SAA, until such time as we have obtained certainty in the market.”
However, the company reviewed its position and decided to lift its stop-sell on SAA.
Flight Centre Travel Group managing director for the Middle East and Africa, Andrew Stark said: “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-sale’ on SAA.
“As of 14 February 2019, the group’s wholly owned brands – namely Flight Centre Travel Group, FCM Travel Solutions, Corporate Traveller, Flight Centre Business Travel, Cruiseabout, and Flight Centre Associates – will sell SAA tickets to its customers, in accordance with its standard terms and conditions.”
SAA on its website stated that the airline was pleased that TIC reinstated the travel supplier insolvency cover on the airline.
“This milestone represents a significant step forward for SAA, the global travel agency community and customers alike.
“In practice, this means that both TIC and the Bryte Insurance Company are now offering these essential insurance services across the travel trade, and providing protection for customers choosing to fly with SAA.
“TIC, a division of Santam Limited said that this development is based on their confidence that the decisions taken during the business rescue process are in the best interests of stabilising SAA,” it revealed in a statement.
Deon Fredericks, Acting CFO of SAA, said: “This is an important day for SAA. Customers can now purchase tickets with renewed confidence in the knowledge that they are protected on every step of their journey through either TIC or Bryte Insurance.”