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Duo collapse exposes protection loophole
A loophole in air passenger protection has been exposed once again with the failure of Duo Airways.
The Birmingham-based scheduled carrier, which had been only operating since last October, ceased trading on 1 May and has entered administration.
The airline had a staff of more than 300 in Birmingham and Edinburgh and left up to 1,000 passengers stranded.
But few passengers can expect to get their money back as there is no consumer protection safety net in place in the event of failure other than for those who paid by credit card or took out adequate travel insurance.
The Civil Aviation Authority requires tour operators to lodge bonds to obtain ATOLs to provide financial back-up for repatriation and refunds in case of collapse. The ATOL regime does not extend to scheduled carriers like Duo, although the CAA is in the process of reviewing passenger protection.
A statement from Duo administrators Deloitte said: “Passengers who have booked flights which are now cancelled are unlikely to be protected by ATOL.”
Duo was unable to fly back passengers stranded abroad and those booked with the airline were forced to make “alternative arrangements to return home”, according to Deloitte.
Duo was established following a management buy-out of former British Airways franchise carrier Maersk Air Limited. It operated 12 routes from Birmingham and six from Edinburgh using a fleet of eight Canadair Regional Jets.
Last week the airline was hopeful of attracting a new investor and announced a number of new routes, including Pisa and Shannon, from 1 June. Late last Friday the company made it clear it was in trouble with plans to axe 75% of its network. At midnight it was clear that Duo could no longer survive.
Report by Phil Davies
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