After the last flight flew with Ghana International Airlines (GIA), in April this year, there remained but only hope that the airline may resume. This ‘short lived’ hope was soon shattered by frequent press releases telling people ‘how to claim refund’ and the ‘rerouting’ guides by Ghana International. As far as the refunds concerned, there is either little or no luck. The question is, when we buy a car, we can get it insured, a house – insured, a property – insured, a factory – insured, even a shop or a mall is insured in this century where recession can pounce any time anywhere. Then why not airlines?

I recently read a detailed report on airline business that claimed “airline industry has so far lost as much as it has made since the creation of first every plane craft by Lever Brothers”. Believing that, and what we have said or read earlier, Airline Industry Insurance seems more vital than any other. But what does this insurance cover and how?

Let’s answer it. When usually a ticket is issued on IATA (International Air Transport Association) for any ATOLL covered airlines, a minute deduction of 1.5, 2.5 or at times 3.5 GBP is carried out as “ATOLL INSURANCE”.  Most customers are not even aware that their tickets are secured with Atoll Insurance and there is hardly any time when you get to hear the break downs from Travel Agents. This Atoll Insurance under discussion covers the fare and taxes loss in case if the airline seizes its operations and permanently goes grounded. However, this is only themed to facilitate the passengers. If we see this scenario the other way around, the passengers still get their moneys paid back, however if an airline business is busting it does not have any where to turn down. Hence, the root cause of the problem i.e., the airline is not covered by any insurance.

If we consider an ideal situation, say on every ticket issued, each passenger pays an airline insurance, an airport tax and base fare of airline, on the other hand, if from that paid amount, the airline pays “airline insurance” together with the airport taxes and on each travel each day, there goes a certain amount to the Government or the Governing body that keeps it safe and leaves it as a “open door” for airlines when they are close to getting bankrupted or grounded. This policy can either be used for individual airlines or a “Global Airlines Insurance United” where all airlines paid moneys can be utilized for one crippling airlines hence, indirectly the amount of money that Atoll will be paying back in such scenarios to the passengers (where ATOLL insurance is paid), the same money will be made available to the airline and saving the whole trouble of suspended airlines and stranded passengers!!!

Where this solution may be controversial and initiate a debate among financial analysts, this may prove a long term shield for low cost airlines, budget and cheap flights to Accra Ghana.