Government to launch airline insolvency review

18-04-2018

The Department for Transport (DfT) has launched a call for evidence to assess consumer protection in the event of an airline or travel company failure.

The government has published a consultation, which will act as a call for evidence, to review how to ensure airlines can wind down with the minimum impact on passengers and the taxpayer.

Peter Bucks, chair of the airline insolvency review, said the review will consider both repatriation and refund protections and identify the market reforms necessary to ensure passengers are protected.

It will also consider alternative models for the provision of refund protections, including through the private travel insurance market.

The publication mentions Monarch’s recent collapse, explaining how it demonstrated that “protection is far from universal” and “many consumers are unaware or unsure of what protection if any, they benefit from.”

Bucks said: “Now is an opportune moment to review how best to ensure the consumer is protected against the consequences of airline insolvency. The challenges are considerable and require a fundamental re-think of the status quo.”

Source: Credit Strategy