Tour operators lobby airline passenger financial protection

Following a number of failures among airline carriers, the Federation of Tour Operators (FTO) is asking the government to extend consumer financial protection to passengers on scheduled flights.

Last month, when business-class operator Silverjet failed, most passengers were left to pay for flights on alternate carriers, out of pocket. Passengers on charter flights for package holidays, on the other hand, are protected by a money-back guarantee.

Two years ago, the government ruled against this request, in spite of intense lobbying by the Civil Aviation Authority and Air Transport Users Council. Ministers bowed to pressure exerted by major airlines, which argued that carriers rarely fail and that consumers are not protected against company failure when making purchases of other goods and services.

The situation is changing, however, with soaring oil prices leading to frequent airline failures. Michael O’Leary, the head of Ryanair, has warned that most every carrier in Europe – except for the top six - is in danger, and the airline association, IATA, is predicting losses in the industry of up to $6 billion for 2008.

Andy Cooper, FTO director-general, said: “It is high time our government and regulator put in place proper protection for citizens. Stranded families and financially disadvantaged travellers will neither forgive nor forget a government which waited for a major airline collapse before acting.”

According to the CAA, ministers are not expected to revise their opinions.