AITO steps into £1 passenger levy row

The Association of Independent Tour Operators has stepped into the row over passenger protection by urging the Government not be swayed by objections by British Airways.

AITO fears customers may be left stranded if a scheduled airline collapsed while the debate continues over whether to impose a £1 levy on flights.

The proposal by the Civil Aviation Authority was put back on Monday as part of a reading of the Aviation Bill in the House of Commons, as reported by TravelMole.

While many MPs agreed that existing protection was inadequate and supported the CAA’s proposals for a £1 consumer levy, no decision was taken and the issue now goes to committee for discussion. 

AITO believes that Government action is needed now, not at some vague point in the future, only triggered when holidaymakers suffer an airline collapse and are filmed by TV cameras stranded overseas. 

AITO director Noel Josephides warned: “In the meantime, if an airline fails, there will be two classes of passenger. Protected passengers – those who have booked with tour operators – will be refunded in full or repatriated, free of charge. Unprotected passengers – who have booked direct with the same airline – will be left to their own devices and could well incur heavy and unbudgeted costs simply to get themselves home.” 

Josephides (Sunvil Holidays) urged the Government not to give in to BA’s “bullying tactics”.

The levy offered a fairer deal to both consumers and travel companies, he argued.  

Josephides said: “BA argues that consumers should insure themselves. But 90% of insurance policies don’t cover scheduled airline failure, and 50% of travellers leave home without travel insurance. It would cost consumers far more than £1 a go to buy such cover – and it wouldn’t incorporate repatriation arrangements.

“While the might of BA doubtless ensures that the Government pays attention to its demands, why should this PLC, created with taxpayers’ money and then privatised, put its own commercial interests above the rights of the consumer? 

“AITO would like to see transport secretary Alistair Darling opt for fair play – both for the public and for the thousands of tour operators and travel agents in the UK, many of which are small businesses. 

“The £1 levy would run for perhaps four years to build up a fund, whereas extra insurance would be a cost that consumers incurred every year, indefinitely. BA’s arguments simply don’t add up.”

He added: “Would you like to be the consumer forced to pay again for a flight home for you and your family after an airline collapse, with no right of redress? Ten years ago, state-run airlines were deemed unlikely to fail and the web didn’t exist.

“Things are different now – few of us would have guessed that Swissair, for example, would go bust. More and more consumers now routinely book holidays and flights independently on the web in the expectation and belief that some sort of protection exists – but it doesn’t. 

“At least 15 airlines have already gone bust in Europe in the last couple of years. Terrorist activities and natural disasters affect all airlines, regardless of their size. Without the proposed £1 levy, it’s the consumer who is left shouldering the risk – and most consumers are totally ignorant of this important fact.”

Josephides added: “It’s time to fight for flight rights, to make air travel more financially secure for everyone.”

Report by Phil Davies