Tour Operators: Berkely Comments on ATA Filing

October 29, 2004

Tour Operators: Berkely Comments on ATA Filing
October 29, 2004 – As reported earlier this week, ATA has filed for Chapter 11 bankruptcy protection after citing rising fuel costs and intense fare competition for its court-protected reorganization.

The NTA Travel Protection Plan with Berkely provides coverage when a tour supplier ceases operations 10 or more days after the date on which the client purchased the plan, provided that the tour supplier had not filed for bankruptcy protection prior to plan purchase.

In a letter to NTA tour operators, Berkely advises that as ATA has not ceased operations, the insolvency coverage in your NTA Travel Protection Plan has not yet been "triggered." Berkely reports that they would not expect to receive any claims at this time because those who have flights booked with ATA can still take those flights.

Berkely also notes that any customers seeking coverage for ATA trips should be advised that purchasing the NTA Travel Protection Plan now will not protect them if their trip is cancelled due to ATA ceasing operations, as the filing for bankruptcy protection has already occurred. However, travelers who are now purchasing the NTA Travel Protection Plan would still have coverage if their trip were to be cancelled due to any other covered reasons listed in the plan (such as illness, injury or death).

To read the letter to tour operators from Berkely, click here.