Passengers ‘rescue pot’

All airlines face payout if rivals go bust

MINISTERS are looking at charging all airlines to help rescue stranded passengers when rivals go bust.

The Department of Transport wants greater protection for customers in the wake of a number of collapses.

The move comes as Flybmi passengers were left in the lurch when the budget airline plunged into administration at the weekend.

The company blamed rising fuel costs and Brexit.

The Department of Transport ordered an airline industry review following the collapse of Monarch in 2017.

Ministers are expected to publish the findings in the spring.

One option is for airlines to pay a small charge for each passenger carried, leaving it up to each company how they pass it on.

It is believed the money would be used to repatriate passengers from abroad down 17.2 at whenever a company collapsed, rather than pay fare refunds. The scheme would be separate from the Civil Aviation Authority-run ATOL protection for package holidaymakers. An interim report said too many air passengers are flying without adequate protection. It found there was a one in four danger of one of the UK’s top 17 airlines going bust in any one year. Meanhile, Flybmi’s sister airline, Loganair, has swooped on five of its routes and is looking at more.

Both carriers are part of the Airline Investments Ltd group, owned by mega wealthy brothers Stephen and Peter Bond.

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