FTO wants better airline failure protection
10.06.08
The Federation of Tour Operators (FTO) has hit out at the government for failing to protect passengers when airlines go bust. The FTO says that it is unfair that passengers who do not book their flight as part of a package are not given the same amount of protection from failing airlines as those who do.
In April this year a new scheme was introduced that means customers of any failed tour operator are covered for repatriation and refunds thanks to the £1 per passenger Air Travel Organisers’ Licensing Protection Contributions. The FTO and airlines argued that this scheme should be widened to protect all air passengers, but the government rejected this.
In light of the current financial uncertainty around airlines as fuel costs rise, economies weaken and budget carriers compete for passengers, the FTO has re-issued its call for a fairer playing field between the tour operators and the airlines.
FTO director general Andrew Cooper said today: ‘I suspect one reason why this logical extension of customer protection has been blocked is the lingering legacy of old-style state-owned, national carrier airlines that sowed a mentality of bogus nationalism and the now quite erroneous belief that airlines do not go bust.'
‘It is time that our government and regulator urgently put in place proper protection for citizens and also set tour operators a level runway to ensure fair competition. Stranded families and financially disadvantaged travellers will neither forgive nor forget a government that waited for a major airline collapse before acting.’
‘Events have shown that airline customers badly need comparable protection to customers of tour operators, and in turn tour operators deserve a level playing field to compete fairly with airlines, given the increasingly blurred and irrelevant line between a ‘package’ and separate air and hotel bookings. Indeed research shows that many airline passengers wrongly believe they already enjoy comparable protection to those on packages.’
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