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Airlines should offer financial protection for passengers, watchdog claims

Airlines should offer financial protection for passengers, watchdog claims

Airlines may be told to offer financial protection for their passengers after calls from a UK passenger watchdog.

The Air Transport Users Council (AUC) has written to transport secretary Geoff Hoon advising that a flat fee levy on all passengers to be made available to cover against any further airline collapses.

Under the current system, passengers who book flights-only deals with airlines are not protected by Abta or Air travel Organisers’ Licensing (Atol) should an airline collapse.

Speaking to travelmole.com, a spokesperson for the AUC said: "The current climate and the increasingly competitive nature of the industry raises the spectre of a greater likelihood of airline failure.

"The AUC therefore believes that the time is right for the government to take another look at this issue."

Under the AUC’s recommendation, airlines should be made to provide financial protection in the same way as other travel operators.

The calls come in the wake of a number of airline collapses, with cheap flights carrier XL being the most high profile casualty. High fuel costs have been touted as the main reason for the collapses.

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