Fri, 22 October 2010
Henry Smith (Conservative, Crawley) : Asked the Secretary of State for Transport (1) what discussions he has had with Air Travel Organisers’ Licensing on reform of its financial protection scheme; (2) if he will bring forward proposals to guard against future failures of tour operators and airlines.
Theresa Villiers (Conservative, Aviation Minister) : We are taking the need to update the Air Travel Organisers’ Licensing (ATOL) financial protection scheme very seriously, and are working on what can be done to ensure that it remains relevant to today’s travel market. The Department for Transport (DfT) is having ongoing discussions with the Civil Aviation Authority (CAA) regarding possible options for reforming ATOL and we hope to be able to make an announcement soon.
The finances of UK airlines are regularly monitored by the CAA as a condition of the operating licences issued by the authority, which should reduce the risk of failure. I understand that the European Commission is considering the options for airline insolvency protection across the EU.
Sourced from Dehavilland: www1.dehavilland.co.uk