Duo collapse exposes protection loophole - TravelMole


Duo collapse exposes protection loophole

Saturday, 04 May, 2004 0

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

 



 

profileimage

Phil Davies



Most Read

Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail

Sophia Hyder Hock on Global Social Inclusion in Tourism

Sustainable Tourism: Don Welsh on Community Values and Global Collaboration

Jane Cunningham: Enhancing European Engagement in Tourism

Kristin Dunne: Navigating Destination Strategy

Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM

Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life

Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms

Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand

Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims

TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka

Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
TRAINING & COMPETITION

Our emails to you has bounced travelmole.com Or You can change your email from your profile Setting Section

Your region selection will be saved in your cookie for future visits. Please enable your cookie for TravelMole.com so this dialog box will not come up again.

Price Based Country test mode enabled for testing United States (US). You should do tests on private browsing mode. Browse in private with Firefox, Chrome and Safari