16 APRIL 2018
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Government moves in the wake of the Monarch collapse last year to protect passengers when carriers go out of business take an important step forward today, Monday, with a call for evidence for the Airline Insolvency Review.
It is the first step in the project, which will produce a final report by the end of the year on how best to ensure consumers are protected, including the practical measures needed to repatriate or reimburse people and how to fund the costs.
The call for evidence document contains an introduction to airline insolvency, sets out the context of the review and the challenges of responding to an airline insolvency, and also sets out next steps and how to be involved in the project.
Backers say the insolvency problem is becoming worse, with risks to passengers of airline failure only likely to increase as demand for air travel increases and the relative proportion of ATOL-protected passengers declines.
The call for evidence notes passengers lack awareness of the protection they have or do not have. Review chairman Peter Bucks said: “We are approaching these complex problems with an open mind and are keen to hear from all with ideas.”
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