The Government will reform the
current system to enable airlines to be placed in special
administration, allowing the airline’s planes to continue flying
in order to bring passengers back to the UK faster and without
disruption, providing certainty for every passenger that they
will be able to get home without delay.
This will mean that the regulator could make
use of the airline’s existing planes and crew to repatriate
passengers without the disruption or uncertainty of not knowing
how or when they will get home if an airline collapses which they
are not currently able to do, and will also reduce the burden
placed on taxpayers.
Transport Secretary said:
“We’ve seen recently the huge impact airlines
collapsing can have on passengers and staff. To bring over
140,000 Thomas Cook passengers home, the Government and UK CAA
worked together round the clock and, with the support of people
across the globe, carried out the biggest peacetime repatriation
exercise in UK history.
“I’m determined to bring in a better system to
deal with similar situations in future, helping ensure passengers
are protected and brought home quickly and safely. I’ve
personally spoken with Peter Bucks, the Chair of the Airline
Insolvency Review, and plan to draw on his expertise and bring in
airline insolvency reforms as quickly as possible.”
The recent collapse of Thomas Cook
demonstrated not only the impact of the collapse of a major
airline on both staff and passengers, but also the complexity and
cost of repatriating those affected.
For example, during the collapses of Monarch
and Thomas Cook, the Government and the CAA had to source
aircrafts from around the world with repatriation operations
costing millions of pounds.
Being able to make use of existing assets and
staff in order to get people home will help to cut the costs of
these repatriation efforts when they occur, make repatriation
easier to deliver and also reduce the disruption felt by
passengers.
The new legislation follows the Government’s
Airline Insolvency review, which looked at what steps could be
taken to better respond to the collapse of airlines in the
future.
The Department and the CAA have already taken
forward work to expand the CAA’s ability to pre-secure aircraft
to operate a repatriation.
