Air Australia Collapse | Travel Alert

Air Australia Collapse

17 Feb 2012

Need Travel Insurance?

The following information concerns the financial collapse and subsequent grounding of all Air Australia flights effective 17 February 2012. This applies to travel insurance policies issued on or before 16 February 2012.

We will be providing cover for reasonable costs to customers impacted by the financial collapse of Air Australia.

What do you need to know about your policy?

If you are currently travelling:

  • If you have started your journey and your flight is cancelled due to the financial collapse, you may claim for reasonable additional food, accommodation and travel expenses.
  • Limits apply under your policy, and for full details you should refer to the Product Disclosure Statement you received when you purchased your travel insurance.
  • There is no provision to claim under your policy for cancellation or rearrangement expenses for the utilised portions of your travel arrangements.

If you have not yet departed:

  • If you have not yet departed, we recommend you contact your travel agent or travel provider regarding the best and most cost effective option in altering or cancelling your trip. There may be options available to you in this instance with other airline providers.
  • For any other outstanding expenses you will need to submit a claim for assessment.
  • All travel insurance policies provide cover for unforeseen and unexpected circumstances. Due to the extensive media coverage, there is no provision to claim for any expenses relating to the cancellation of flights for policies issued on or after 17 February 2012.

What next steps should you take?

  • You should take all reasonable steps to minimise your expenses and this includes rearranging your journey where possible. Re-arrangements to your journey should be consistent with the type and standard of arrangements you originally made. For example if you have been using two star or budget accommodation on your trip to date, then we advise that the replacement accommodation you seek should be of a similar standard.
  • Please submit your travel insurance claim with relevant supporting documentation.
  • Any compensation and/or refunds you receive from Air Australia or your credit card provider for transport, food or accommodation will be deducted from any settlement, if your claim is accepted.
  • Finally, to help Australians avoid difficulties overseas, the Department of Foreign Affairs and Trade (DFAT) maintains travel advisories for more than 160 destinations overseas via its website DFAT’s travel advice provides accurate, up-to-date information about the risks Australians might face overseas, assisting you to make well-informed decisions about whether, when and where to travel. We recommend that you stay up-to-date with its destination specific travel advisories for the country of your destination as your travel insurance cover may be affected if you travel to high risk areas or situations.

Contact us

  • If you have any questions or queries, please contact our Allianz Global Assistance Information Hotline on 1300 725 154.
  • We will publish this and any updated travel insurance advisories on our website:

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