LOW AIRFARE TICKETS SHOULD STATE NO PROTECTION IF AIRLINE GOES BUST

12.00.00pm UTC (GMT +0000) Fri 7th May 2004

Following the collapse of budget airline Duo West Midlands Euro-MP Liz Lynne has warned passengers flying off on holiday to make sure they are covered should this happen to the airline they are using.

The Liberal Democrat MEP is today calling for the Government to require airlines to set up a consumer protection scheme to stop people being stranded abroad.

Figures reveal that 31% of holidaymakers have no protection if their chosen airline goes bust.

Traditional package holidays supplied by travel agents or tour operators are covered by ATOL. If the holiday-company, or airline, goes bust holidaymakers can continue their break and fly back to Britain courtesy of Air Travel Organisers' Licensing (ATOL's) protection.

The new trend of booking flights and accommodation separately over the phone or internet sites leaves many people beyond ATOL's protection.

Commenting, Liz Lynne said:

"Many consumers, seduced by the bargain fares, will find themselves stranded abroad if their airline becomes one of the predicted casualties of the fare wars. Thousands of Holidaymakers from the West Midlands, were caught out last weekend when Duo airlines ceased its operations.

"These Holidaymakers bought their tickets in good faith without realising that they have absolutely no protection if their airline goes bust. This cannot be allowed to continue.

"Competition in the market place is good, but companies must make it clear that lower price tickets give low, or no, protection. Holidaymakers can then make informed choices about the product they buy.

"Uninformed consumers should not be the innocent bystanders in this price war. Whilst the Government considers reviewing the situation, holidaymakers will remain vulnerable.

"The Government doesn't have to manage a consumer protection scheme, it just has to require it. We are looking for a scheme, which is simple, cheap and comprehensive and brought in as a matter of urgency.

"Every airline should contribute. In a highly competitive market where no airline can be guaranteed to be profitable, it would be wrong to distinguish between small and large airlines."

ENDS

Notes To Editors

Last year the European Parliament approved new legislation so that from 2005 airlines and tour operators will have to pay compensation to passengers when flights are cancelled or overbooked. This particular piece of legislation though will not cover passengers in the event of airlines going bust.