Passengers Will Pay Extra To Fund Airlines That Go Bust

Airline Passengers will pay an extra 50p on each ticket to fund travellers who need to be repatriated when their airline goes bust.

After the collapse of Monarch Airlines in 2017, the department for transport set up The Insolvency Review. The purpose of the review was to look at ways of protecting passengers from being stranded when their airline carrier collapses. The review recommended a ‘Flight Protection Scheme’ which will foot the bill for future airline collapses.

But the Levy only applies to passengers buying a plane ticket in the UK. And all airlines flying to the UK, will be required to put financial protection in place to pay for passengers to be brought home.

When Monarch collapsed in 2017, more than 85,000 passengers were stranded and had to be repatriated. It cost the taxpayer more than £40 Million. The past year has been a tumultuous one for aviation, with airlines around the world cancelling flights, ceasing operations and leaving passengers stranded.

No less than five airlines have ceased operations since 2019 began. Most recently, Wow Air folded, cancelling flights and leaving passengers stranded around the world. Berlin based airline Germania, filed for bankruptcy citing rising fuel costs and currency fluctuations as contributors to its collapse. In the same month, Flybmi also grounded all flights, blaming the Ambiguity of Brexit and future trading prospects as the main reason.

Peter Bucks chaired the review of the Flight Protection Scheme, he told the Independent: “Although Airline insolvencies are relatively rare, as we have seen in recent months they do happen, and at times have required Government to step in to repatriate passengers at a great cost to the taxpayer. We know passengers expect to be protected from being stranded overseas if their airline should collapse, but in practice, each year many people fly without such protection.”

What to do if you experience problems with your flight

If a flight you’re booked on is delayed, cancelled, or they lose your luggage, you may be entitled to compensation. Under EU law, airlines are required to pay compensation to passengers when their flights are delayed or cancelled. However, you only have the right to Reimbursement in some circumstances. There are two key factors to consider when making a claim: How severely you have been inconvenienced, for example, if you have only been delayed slightly, you may not be entitled to compensation. The cause of the delay, if the delay was caused by extraordinary circumstances you will not be entitled to compensation.