The UK government has proposed a 50c surcharge on every flight, to ensure customers that fall victim to failed airlines, can get home.
The airline insolvency review, which was commissioned after the collapse of Monarch in 2017, said the fee would mean passengers were protected when abroad, but not at the expense of taxpayers. The government stepped in to repatriate 85,000 Monarch passengers, with the Civil Aviation Authority (CAA) organising a mini-airline operation at a cost of £60m.
Airlines, however, said the plan would pile on costs, and claimed the review was overstating the risk of carrier collapses. British Airways’ parent company, IAG, said airline passengers “should not be charged a levy to bail out other carriers”.