business Essential news, comment and analysis


The Airline Insolvency Review was set up in the wake of the collapse of Monarch last October


Airline Insolvency Review considers all-flights levy


Government review outlines possible solutions as it issues a call for evidence. Ian Taylor reports


The government-appointed Airline Insolvency Review will seek to make recommendations “to protect all [air] passengers whose journeys begin in the UK” in line with a long-time demand of the sector.


A ‘Call for Evidence’ document


issued by the review last week confirms it will consider extending financial protection against failure to all UK-originating flights, with a levy on all flights one of the options. The industry has consistently demanded protection against


64 travelweekly.co.uk 19 April 2018


airline failure be extended to all scheduled airline passengers and the CAA has previously proposed an all-flights levy. However, scheduled airlines oppose such a move and the Department for Transport (DfT) has previously ruled it out. The Airline Insolvency Review


points to Ryanair as the reason for an overhaul, noting: “Europe’s largest airline by passengers is regulated by the Irish equivalent of the UK’s CAA. However, the largest flows of passengers for the airline are on its routes to and from the


UK. It would seem appropriate to start from a position of trying to protect all passengers whose journeys begin in the UK.” It warns that a large-scale


failure “could overwhelm” the Atol scheme, which currently protects package holidaymakers. The review was set up after


Monarch Airlines ceased flying on October 2 last year and the DfT ordered the CAA to organise the repatriation of Monarch passengers at a cost of £60 million. The ‘Call for Evidence’ notes the


success of the CAA operation but questions whether it could repeat the repatriation if a larger airline or non-UK carrier failed, or if a


CONTINUED ON PAGE 62


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68