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The end is near

October 10, 2006

Last week, I wrote about the troubles of Trip Assured, the unlicensed Tennessee travel “insurance” company that had denied several readers’ claims. Yesterday, Airbus sank into deeper trouble when its chief executive, Christian Streiff, resigned from the ailing airframe manufacturer after just three months on the job.

Both companies may be looking at the end, one way or another. And both situations are deserving of comment.

The Trip Assured story took a turn for the worse last week when Metavante Corp., which processes credit card transactions, suspended processing because of what it called an “at risk” situation.

Apparently, there is some doubt that Trip Assured’s services are safe, reliable and secure, after California’s insurance commissioner, John Garamendi, issued a cease and desist order against the company. It is the sixth state to do so.

The Airbus situation is slightly more complex. It involves production delays on the superjumbo A380 — yeah, that’s the same one I reported in April they were pitching standing seats on.

There are now some widespread doubts about the future of the A380. If it never flies, that would certainly make any discussion of seat configurations highly theoretical.

People have asked: Aren’t you pleased by what appears to be the imminent demise of Trip Assured, if not the A380?

Absolutely not.

I’ve maintained contact with Trip Assured during the last two years, and even though I feel the company has made some missteps when dealing with customers, it has always been completely straightforward with me. Now, it’s possible to be straightforward and still be wrong — but ultimately, that’s something for a court, not a newspaper ombudsman, to determine.

I feel terrible for the employees of Trip Assured who would lose their livelihoods if the company went under.

But how about an “I-told-you-so” on the A380 situation?

Sorry, no can do.

How could anyone be happy about a painful restructuring that any company has to undertake? All the lost jobs, the careers cut short. Airbus has clearly made a lot of mistakes — quite a few more than I did in reporting my story about its ideas for squeezing more passengers on an aircraft.

When I look at Airbus and Trip Assured, I see companies that have lost their way. I hope that they get their bearings back, for the sake of their shareholders, their employees, and most importantly, for their customers.

Christopher Elliott is the author of Scammed: How to Save Your Money and Find Better Service in a World of Schemes, Swindles, and Shady Deals. Critics have called it “eye-opening” and “inspiring” — it’ll “grab your attention and won’t let go.” Order your copy now on Amazon, Barnes & Noble or iTunes.

1 comment

  • Don Filiault

    Chris:

    While I’m happy that you’ve continued to comment on the Trip Assured saga, I really can’t shed a tear about whether someone who works for this company losing their job. In the five years of the company’s existence, there have been several people who worked for the company who, when they found out what kind of company they were working for, terminated their employment with Mr. Johnson very quickly. There are many travel agents who, as soon as the complaints started rolling in from defrauded customers, quickly terminated their relationship with Mr. Johnson, despite the fact that they were being paid a 40% commission to sell his product to unwary customers. In at least one case, Mr. Johnson stopped payment on earned commission checks after a travel company dropped him as a supplier. He has sued customers, threatened them, and has even resorted to contacting their employers as another means of intimidation.
    You may be taking some of his statements as truth, when more investigation would show that they aren’t truth at all. He is still telling reporters that what he’s selling isn’t insurance. Six states have already determined that he is, and he’s doing it without a license to do so!
    Mr. Johnson’s chickens have come home to roost. I won’t miss him at all.

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