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Government to study CAA report
A long-awaited study on how to revamp the financial protection scheme for air travellers will be scrutinised by senior government ministers in the next two weeks.
They will pore over the recommendations that have followed months of intensive research and discussions between the Civil Aviation Authority and Department for Transport.
While nothing was included in yesterday’s Queen Speech about extending the ATOL scheme to all carriers – a decision which disappointed ABTA – ministers could decide to add the legislation at a later date.
CAA deputy director for consumer protection David Moesli confirmed the study – called a Regulatory Impact Assessment – will be with ministers imminently but refused to reveal the findings.
“It is about modernising the financial protection for travellers,” he said.
Many industry bodies want to see financial protection extended beyond ATOL-bonded package holidays to include all scheduled and no frills carriers.
Among the previous proposals include a levy, insurance payment imposed on carriers or a simple extension of the current ATOL scheme.
Report by Steve Jones
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