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Watchdog raises ‘serious concern’ over financial protection
The holiday protection watchdog has voiced “serious concerns” over the number people travelling without financial cover.
The Air Travel Insolvency Protection Committee warned if changes are not made soon, major tour operators could begin selling holidays outside ATOL regulations to compete with low cost carriers.
“Action is urgently required to extend protection to all UK-originating air travel,” said ATIPAC
ATIPAC’s concerns have emerged after the Air Travel Trust Fund plunged further into the red after paying out £540,000 following 14 company failures.
Chairman John Cox said: “The committee has pressed the government for 12 years for legislation to provide a levy to replenish the Air Travel Trust Fund and it is very pleased that a bill is now before Parliament.
“However, we continue to have very serious concerns about the growing proportion of leisure trips that fall outside ATOL and where the consumer is now unprotected. Consumers are confused and many believe they are covered when they are not.”
He said action was “urgently required” to extend protection to cover all air travel.
Report by Steve Jones
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