The Air Transport Users Council has written to transport secretary Geoff Hoon calling for action over financial protection for scheduled airline passengers.
The watchdog claims the current economic climate combined with the increasingly competitive nature of the industry makes airline failure more likely. The organisation claims this means it is time for the government to revisit the issue especially in the wake of the failure of XL Leisure Group.
Chairman of AUC Tina Tietjen said: “Tha AUC’s previous position in respect of scheduled airline failure has been that protection should be provided via a flat fee levy on all passengers paid into a common fund.
“This levy would cover passengers for reimbursement of monies and, for those already abroad, completion of holiday and return home. We continue to hold this view and urge the government to give detailed consideration to extending financial protection for air passengers to include the failure of scheduled airlines.”