Holiday Rentals News - Calls for emergency fund to help stranded passengers

Calls for emergency fund to help stranded passengers

Calls have been made for new measures to help protect stranded passengers should an airline collapse. According to The Times, the Air Transport Users Council (AUC) is championing a proposed ticket levy with the aim of creating an emergency fund.

The AUC, which represents airline passengers, fears that as fuel prices continue to soar, an increasing number of carriers are going to see themselves driven to bankruptcy, and has called for a contingency plan to aid affected passengers. At present, there is no guarantee that holidaymakers travelling independently will be repatriated should their airline be grounded. Therefore, along with the Air Transport Organisers Licensing Authority (ATOL), the AUC is proposing a small levy on every ticket, which would then be channelled into an emergency fund.

James Fremantle of the AUC explained the importance of having such a system in place; "In the current climate, it is even more important. This is a debate we need to have if airlines are going to start going bust."

However, not everyone is in favour of the suggested plans. Doug McVitie, avaiation consultant, commented; "There is a self regulating system where airlines step in to help stranded passengers with discounted fares. A levy would only increase fares further, putting passengers off travelling and making the situation worse."

Under the proposed initiative, the levy could possibly stand at £1 or less. Recent months have seen a spate of airline bankruptcies thanks to rising oil costs. The affected carriers include Oasis, which operated between London and Hong Kong.

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