United Kingdom
United States
Asia Pacific
CAA ‘to back £1 passenger protection levy’
The Civil Aviation Authority is to call for a £1 levy on air passengers to build up a £250 million protection fund against failed airlines.
According to The Independent, the CAA will call for the fund to be built up over three to five years to insure passengers against the consequences of an airline becoming insolvent.
The newspaper says it is understood that the Department for Transport has given approval to the proposal despite opposition from the Treasury. The levy could now be included in the Aviation Bill going through Parliament.
According to reports, the CAA believes the ATOL scheme is now inadequate because it only covers customers booking air-based holidays with tour operators but those who book direct with an airline or organise DIY breaks via the internet can find themselves without cover.
A document from the authority reportedly described the present system as inefficient and one which imposes a substantial burden on tour operators through bonding requirements, so much so that some are reorganising their businesses so that they are not covered by the ATOL regime.
But the idea of a levy will provoke strong opposition from major airlines such as British Airways and Monarch who argue that thier passengers should not have to pay to bail out weaker carriers.
Report by Phil Davies
Related News Stories:
Phil Davies
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled