CAA proposes refunds for scheduled collapses

Travellers buying tickets for scheduled will be paid a full refund if the carrier goes bust, under new plans being proposed by the Civil Aviation Authority (CAA). Under the current arrangement, passengers lose out if a carrier collapses, even though they can sometimes claim against their finance company if they paid by credit card. According to a report in the Daily Telegraph, the CAA, the regulatory body is worried about this loophole and wants travellers to be as well protected as when they buy a charter flight as part of a package holiday. Helen Simpson, the CAA’s director of consumer protection, is quoted as saying: “We need a change in the law because the number of people covered by the traditional bonding system is declining.” The newspaper reports that the CAA is recommending a ?2 per passenger fee for all return trips involving a stop in the UK, which will fund payouts in the event of a collapse. It added that the fee could be passed on to holidaymakers. Any new legislation is unlikely to take effect before 2006. Report by Tim Gillett, News From Abroad