Originally Posted by
corporate-wage-slave
I think that's is one of the learnings from the Primera crash - it's not that simple. If you are overseas and about to return on a failed airline, your options - price wise - could be horrendously priced. Particularly if you absolutely have to travel (e.g. to return to work, kids getting back to school). Moreover people thought their insurance would cover this. Well I think it would be only a small minority whose insurance would cover this, many policies specifically exclude airline failure unless the SAFI component is purchased. For example the John Lewis Finance travel insurance policy doesn't include it at the Essential Level, you need the Plus or Premier levels to include this, and they are generally considered one of the better insurers out there. This also applies to those with expensive "component" holidays - hotels, car hire, excursions booked separately and the airline fails the day before travel. The credit card protection just covers the lost spend - which may be OK if you are months away from travel.
You are confusing protection under s75 of the consumer credit act and travel insurance. s75 protection does not just cover lost spend. It makes the credit card company jointly liable for fulfillment of the obligations of the underlying contract. Thus, in the case of an airline with which you have a contract of transport, the credit card company is put in the shoes of the airline in having to fulfill the transport contract.
If your credit card is not a UK credit card or if it is a card not covered by s75 (such as a debit card, for instance) of you are in a situation which is not covered by s75 (such as buying via a travel agent rather than directly with the airline), this is a different story.