Civil Aviation Bill

The costs effectively fall on different parts of the industry. In considering the issue, we bore in mind not only the points about consumer protection and insurance, but the fact that the different parts of the industry had very different interests. The tour operators were generally in favour of one approach, and the airlines were generally, with some exceptions, in favour of another. So it is a question of considering all the different players and then making a decision. My hon. Friend the Member for Crewe and Nantwich (Mrs. Dunwoody) referred to the Irish airline, EUjet, which failed this summer. Other low-cost airlines stepped in to help passengers get home. Similarly, when Swissair and Sabena failed, other full-service airlines honoured the homeward tickets of passengers abroad. The Government have been encouraged by the willingness expressed by airlines to ensure that travellers have better information about insurance and by airlines’ assurances that they would continue to take voluntary action on repatriation. I will talk further to airlines in the coming weeks to ensure that effective voluntary measures are in place as quickly as possible. The Government are also asking the CAA to review whether the system of ATOL—air travel organisers’ licensing—bonds could be replaced with a less burdensome means of meeting tour operators’ obligations to package holiday-makers under the package travel directive, while replenishing the air travel trust fund following the passage of the Bill. I am also aware that the Transport Committee, which is chaired by my hon. Friend the Member for Crewe and Nantwich, will consider the issue and invite evidence on it during the next few weeks. I am sure that that will give us an opportunity to discuss this in detail.