Protection plan for scheduled airlines
Last updated at 09:50 22 March 2004
The Civil Aviation Authority has put forward a proposal to establish a new fund to cover losses passengers face if a carrier goes bust.
Reservations with chartered airlines such as Airtours are covered should a company fail under the Air Travel Organisers' Licensing (ATOL).
But under the current system flights with scheduled airlines, for example British Airways, are not.
The CAA has suggested the scheme would be funded by a flat rate fee of £1 per passenger probably added to airfares. ATOL cover would then be extended to cover scheduled flights.
The CAA will have final consultations with industry before the final report is presented to the Government in two months. If passed the policy could become law within 15 months.
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