Rethink urged over pounds-1 flight levy TRAVEL: FLIGHT PROTECTION

0 Comments | Sunday Herald, The, Feb 5, 2006 | by James Hamilton

AN influential Westminster committee has called on the government to reconsider a pounds-1 levy on overseas flights to protect travellers when airlines go bust.

A Commons transport committee report published yesterday said millions of holidaymakers travel without financial protection every year. It criticised ministers' inaction, citing last year's collapse of low-fare operator EUjet as an example of what could go wrong. The Civil Aviation Authority (CAA) estimated it cost the thousands of stranded passengers up to pounds-200 each to return to the UK but, in October, ministers rejected CAA calls for a pounds-1 levy to protect passengers from future collapses.

Committee chairwoman Gwyneth Dunwoody said the decision was "wrong" but the Department for Transport said consumers "should be free to choose to insure against airline failure".