FTO backs government plans for air passengers

The Federation of Tour Operators is backing plans by the Department for Transport to step up work on providing protection for air travellers in the event of a financial failure. The DoT’s call for airlines to set up voluntary, interim schemes to protect holidaymakers has also been welcomed by the FTO. The association, which represents companies supplying 70 per cent of overseas holidays, is lobbying hard for a reform of the current bonding system. The scheme has become outdated following the increase in independent travel and the rise in the number of no-frills airlines, which are not bonded. The FTO is concerned that more companies and airlines will fail and holidaymakers will lose money and be stranded abroad. “We welcome the expectation that this new work will be completed early in 2005 as UK market conditions, spiralling oil prices and the difficult global climate for international tourism all point to the risk of even more financial failures over the coming weeks which could leave British air passengers stranded abroad and out of pocket,” said a spokeswoman for the FTO. “We also welcome the Department for Transport’s commitment to encouraging airlines to implement interim voluntary measures to improve consumer protection until new arrangements are agreed and legislative time found to enact them, provided that any arrangements are meaningful and effective.”