Passengers are not being shielded from financial losses arising from airline bankruptcies, it has been claimed.
With several high-profile carriers going under in recent months, the Air Travel Insolvency Protection Advisory Committee (Atipac) has said more must be done to protect consumers.
The body, which serves as an advisor to the Civil Aviation Authority, singled out the failures of now-defunct business class carriers Silverjet, MAXjet and Eos.
It said in its eighth annual report that the aviation sector is in the throes of a perilous market upheaval, which necessitates measures to ensure passengers can claim back irredeemable airfares.
Atipac chairman John Cox expressed “significant concern” over the lack of financial protection for air travellers who make bookings direct with a scheduled airline.
“Airlines are not providing suitable protection and advice for their passengers,” he said. “Information about financial protection is negligible and – in the event of an airline failing – passengers often have no choice but to pay their own repatriation costs.”
