Two travel industry heavyweights met with UK aviation minister Karen Buck this week in a last-ditch attempt to secure changes to the Civil Aviation Bill.
Federation of Tour Operators director-general Andy Cooper and ABTA chief executive Ian Reynolds were granted the opportunity on Tuesday night to argue their case for amendments to the proposed bill in a private hearing with Buck.
ABTA and the FTO want the Government to publish its recent regulatory impact assessment to create more open debate, and they want an “enabling provision” added to the bill giving scope for the £1 levy to include all airline passengers.
As it stands, the bill will only require passengers booked with ATOL-protected businesses to pay the £1 levy to wipe out the Air Travel Trust’s £9.7 million debt.
Reynolds said he had a strong message for Buck. “Don’t miss the opportunity to put something into this bill – leave it open to extend the levy to airlines in the future.”
Virgin Atlantic is strongly in favour of the proposal. Director of external and government affairs Barry Humphreys said sister company Virgin Holidays had “tens of millions of pounds tied up in its ATOL bond”.
The airline wants to see ATOL bonds abolished and replaced with an expanded £1 levy scheme including scheduled airlines. “We view these proposals as a liberalisation, a reduction in the industry’s regulation rather than an increase,” Humphreys said.
However, British Airways is strongly opposed to the proposed changes.
Director of government relations Andrew Cahn claimed such a scheme would “destroy the competitive advantage BA has earned” because its passengers would effectively fund the rescue of passengers impacted by rival airline failures.
Cooper criticised BA’s stance as “political dogma”.
Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.
The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.