/Govt plans to allow collapsed airlines to fly passengers home

Govt plans to allow collapsed airlines to fly passengers home

Published on Monday, October 14, 2019

Government proposals could allow aircraft belonging to collapsed airlines to repatriate UK passengers, instead of being grounded.

The proposed legislation follows the collapse of Thomas Cook, which resulted in its aircraft and crew being immediately grounded while the Civil Aviation Authority had to source aircraft from other carriers to bring customers home.

Under the new proposal, the collapsed airline would be placed into special administration so aircraft and crew could continue flying in the short term. Current UK insolvency laws don’t allow this.

The recommendation comes from a review into airline insolvency published in May, which recommended the introduction of a 50p levy per air fare to cover the cost of bringing passengers home when an airline goes bust.

Transport Secretary Grant Shapps said: “We’ve seen recently the huge impact airlines collapsing can have on passengers and staff.

“To bring over 140,000 Thomas Cook passengers home, the Government and UK CAA worked together round the clock and, with the support of people across the globe, carried out the biggest peacetime repatriation exercise in UK history.

“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 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.”

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