New law to make bust hols firms get customers home

PLANES from airlines that go bust will be used to fly stranded passengers home under a new law set to be introduced in the wake of the collapse of Thomas Cook.

The legislation would enable bankrupt carriers to be put in “special administration”, meaning their aircraft and crew can continue flying.

Under current rules an airline’s planes are grounded if it goes bust.

It meant the Civil Aviation Authority had to hire 150 aircraft to repatriate around 140,000 Thomas Cook holidaymakers at a cost of over £100million last month.

The Government believes letting the CAA use an insolvent airline’s planes and crew in future cases would mean REFORMS Grant Shapps reduced disruption and lower costs to taxpayers. Transport Secretary Grant Shapps said: “We’ve seen the huge impact airlines collapsing can have. “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 final report from the review was published in May and recommended the introduction of a 50p levy on every air fare to cover the cost of bringing UK passengers home when an airline goes out of business.

The legislation is expected to be outlined in the Queen’s Speech when MPs return to Parliament on Monday.