More talks planned after levy plan rejected
Industry leaders will sit down for talks with aviation minister Karen Buck this week after the government unceremoniously rejected plans for a £1 levy.
Just hours before a scheduled debate in the House of Commons, the department of transport threw out the proposals, claiming the “attractions are outweighed by the disadvantages.”
The decision, which followed months of exhaustive studies by the CAA, left industry bodies angry and frustrated.
Federation of Tour Operators director general Andy Cooper said: “The biggest disappointment is that they have closed the door entirely. That said, the government has described the current ATOL system as bureaucratic and wants to find ways of replacing it. We regard that as quite important and will meet with the aviation minister on Thursday.”
The Civil Aviation Authority also described the ruling as disappointing but said the government wanted further consultation over updating the ATOL system.
“We will have to consult the industry and see how best to take this forward,” said deputy director of consumer protection David Moesli.
ABTA and the Association of Independent Tour Operators were less diplomatic
A statement from ABTA said customers will ultimately suffer.
“The government has failed to act in the interests of millions of air passengers who are now unknowingly placed at financial risk,” the association said. “It has flown in the face of a strong coalition of over 100 MPs from all parties, the major consumer groups and the CAA while accepting the arguments of the big airlines wholesale.
“There is no doubt that passengers will suffer from the decision in the near future and for as long as there is no universal system of consumer protection for flyers.”
AITO declared itself “shell-shocked” at the announcement.
Director Noel Josephides said: “Consumer protection obviously doesn’t concern the government. This was an opportunity to update the antiquated travel bonding system that currently applies to just one half of the travel industry, leaving the other half unregulated from a consumer protection viewpoint.
“To announce such a decision just hours before the topic was due to be debated in the house of commons is rubbing salt into the wounds. We believed that the debate would give us the opportunity for our voice to be heard. It appears however that democracy exists no longer in the UK as the government rode roughshod over us and made the announcement hours before the debate.”
Josephides added that the decision showed a “remarkable disregard” for consumers and claimed overcapacity in the airline market would inevitably result in another failure.
“It’s not a question of if, but when more scheduled airline will fail leaving unprotected passengers to bail themselves out.”
Airlines, including BA, Easyjet and Ryanair, all welcomed the decision.
Report by Steve Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025