CAA dismisses claims Holidays 4U failure will cost trust fund £5m
The Civil Aviation Authority has dismissed reports in the travel press that the collapse of ATOL licence holder Holidays 4U will cost the Air Travel Trust Fund £5m as nothing more than 'pure speculation'.
The Brighton-based Turkey went into administration today with 12,800 passengers overseas and some 20,000 forwarding bookings but the CAA said it was way too early to say whether its failure would lead to a call on the ATTF.
The operator, which was licensed to carry 100,500 passengers a year, had a bond for £4.5m. Its turnover was £35m a year.
It called in administrators PwC earlier today, saying that it was unable to meet its liabilities. The CAA has confirmed that the 12,800 passengers abroad will be repatriated and can continue their holidays as normal and those who have booked packages and flight-only deals will be refunded.
However, the company's ATOL will not cover accommodation booked by those who bought flight-only deals and, as all further departures have been cancelled, holidaymakers who can't find flights with other airlines stand to lose their money.
Consumer association Which? is advising customers to ask their accommodation provider to refund their money or allow them to re-book for another date or to check if they are covered by their travel insurance.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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