Bankrupt Airline Bailout Tax Could Add 50p to a Flight Ticket

By Gary Cutlack on at

The nation could face a small new tax on the cost of flying overseas soon, with a review of the conditions of flight saying that a fee of around 50p per plane ticket should go into an emergency pool of money to get stranded passengers home should their airline go bust.

The sort of stranded passengers that end up stuck in the Canary Islands when some small airline goes under would be the lucky beneficiaries of the money in the new fund, which would reduce the government's liability when it comes to repatriating stuck Brits abroad; passengers who bought tickets direct from the airline and are therefore not covered by ATOL package protections.

A total of £40.5m was spent by the Civil Aviation Authority in 2017, when overseas passengers found Monarch had gone bust and couldn't fly them home. This "flight-protection" fee would see passengers taking up the burden of that cost, in a move that would be sold as a guarantee it's possible to get home should BonkersRaveUpAir find its corporate credit card rejected when trying to fill up with aviation fuel at Václav Havel Airport Prague.

Peter Bucks of this Airline Insolvency Review said: "Although airline insolvencies are relatively rare, as we have seen in recent months they do happen -- and at times have required government to step in to repatriate passengers at great cost to the taxpayer." [Sky News]