The Airline Insolvency Review will also examine how the
market could be reformed to ensure that passengers are
better protected. This will include looking at ways of
allowing airlines to wind down while at the same time
carrying out and financing the repatriation of
passengers.
Following the collapse of Monarch Airlines in October
2017, 110,000 passengers were left without transport
home, leading the government to successfully carry out
the biggest ever
peacetime repatriation programme. This review will
consider if there are alternative models that can
provide protection ensuring consumers can travel with
peace of mind, knowing that they are never without
safeguards.
Today (30 March 2018) the Department for Transport has
published the terms of
reference for the review, outlining the next steps
for progress in this area.
The review independently chaired by Peter Bucks will
provide an interim report to the Secretary of State for
Transport by summer 2018. It will outline the potential
options that could be put in place to repatriate
passengers of a collapsed airline. It will be supported
by a team of professional advisers.
A final report will be produced by the end of 2018
which will offer recommendations on repatriation,
refunds and the current financial protection
arrangements for air-travel holidays.
Aviation Minister said:
It is hugely distressing for British holidaymakers to
find themselves stranded abroad due to the failure of
an airline or travel company.
We are determined to put passengers at the heart of
transport which is why we have announced the Airline
Insolvency Review and appointed an independent chair
to consider how best to protect passengers.
I have asked Peter to look at all the possible
options including new legislation to ensure that
passengers are able to get home if their airline
collapses.
Airline Insolvency Review chair, Peter Bucks said:
Given the scale of changes in the air travel market
over the past decade it is high time to take a fresh
look at how well consumers are protected in the event
of an airline insolvency.
Recently we have seen first-hand the very real
consequences of an airline failure and the distress
that this can cause for passengers.
This review will engage with stakeholders to
establish what could be done in the event that
travellers need to be repatriated and how best this
is achieved.
