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Air Travel

Government launches airline insolvency review

By Molly Dyson / 16 April 2018 / Contact Reporter
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The government has called for evidence as part of a consultation to review airline insolvency procedures in the wake of the collapse of Monarch.

The Airline Insolvency Review “will look to ensure airlines can wind down with the minimum impact on passengers and the taxpayer”, according to the Department for Transport.

Peter Bucks, chair of the review, points out in the foreword to the document calling for evidence that a growing proportion of leisure air purchases are not covered by the ATOL scheme. He says this statistic is worrying as airline consolidation is expected and the scale of future failures may be “greater than anything the scheme has dealt with in the past”.

The call for evidence closes at 2345 on 11 May, with an interim report due this summer. The final report will be produced by the end of 2018 and will include recommendations on how the government should handle airline insolvency and repatriation in the future.

Read the full call for evidence document here.

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