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Local News

Insurance firm says designation on airline normal

The international insurance firm that placed Zoom Airlines on its list of airlines it wouldn't cover in the event of a failure says this is normal business.

In an e-mail to the Free Press on Thursday, British-based International Passenger Protection said a financial review of Zoom Airlines is taking place because the air carrier's exposure to insurers has increased.

"This is quite normal and is often due to an airline's success in increasing sales," the e-mail said.

"Zoom has been extremely co-operative during this standard."

On Wednesday, local travel agent Max Johnson, president and CEO of the Great Canadian Travel Company, said he was so concerned about the designation he would not be booking his customers on Zoom because of IPP's designation of the airline.

Johnson said at the time the designation "is usually not a good thing... as a tour operator, you see that and you stop booking for them."

But David Clements, vice-president, sales and marketing, for Zoom called the designation a misunderstanding created when two groups of British tour travellers booked flights and asked for insurance in the same week.

Clements said normally IPP would get one or two insurance requests a year from Zoom travellers.

-- Staff

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