Financial protection for airline passengers inadequate
Ferry Online Travel News 27/10/2008
A UK airline passenger watchdog is calling for better protection for passengers on scheduled flights.
The Air Transport Users Council (AUC), a UK airline passenger watchdog group, has written to Geoff Hoon, the transport secretary, urging the establishment of a flat fee to be paid by all airline passengers, which would pay for protection for the passengers in the case of an airline’s collapse.
Currently, a person who books a holiday using an ATOL-protected travel operator pays a fee of £1, which provides cover for all components of the holiday. For anyone booking flight and hotel separately, no protection is offered.
Last week, Telegraph Travel published the results of its survey of readers who were asked if they would be willing to £1 on top of the cost of their holiday package for protection against an airline’s collapse. Ninety per cent said that they approved of the idea.
Protection for passengers against airline failure has been raised in the past, and is now under consideration once again with the failure of XL and Zoom airlines. The collapse of these two airlines alone affected thousands of holidaymakers, many of whom were not eligible to receive compensation.
Over 25 carriers have failed in 2008 so far, with Spain’s LTE the latest casualty having to ground its flights.
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