Oasis Hong Kong Airline collapse highlights importance of ATOL, says CAA

The collapse of Oasis Hong Kong Airlines highlights the value of ATOL protection and the industry should make more of the security offered by a £1 charge on holidays, says the Civil Aviation Authority.

CAA consumer protection group director Richard Jackson said: “The conditions are ideal for presenting ATOL protection in a positive light. The trade could certainly say £1 is a good deal.”

But he said how companies present the £1 ATOL Protection Contribution now added to holidays remains a commercial decision. The APC replaced the old bonding system for most ATOL holders on April 1.

The industry has generally been reluctant to promote consumer protection since it draws attention to the risk of company failure.

Up to 30,000 Oasis Hong Kong Airlines’ passengers were left out of pocket by the carrier’s move into liquidation last week and an insolvency-protection insurer warned other airlines would follow.

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