COMPENSATION AFTER AIRLINE BANKRUPTCY: There are better ways of helping passengers than just slapping more charges on them says Conservative MEP
Posted, November 24, 2009 @ 00:00
COMPENSATION AFTER AIRLINE BANKRUPTCY: There are better ways of helping passengers than just slapping more charges on them says Conservative MEP
Strasbourg 24 November 2009. Moves to set up a 'guarantee' fund for passengers who find themselves out of pocket following an airline bankruptcy have been questioned by Conservatives.
The plan, contained within a European Parliament resolution being tabled tomorrow, has been put forward without a proper impact assessment on the Industry.
Conservative Transport spokesman in Brussels and aviation expert Jacqueline Foster MEP believes that there is a risk that any costs will simply be transferred to passengers who already pay a host of taxes and additional charges. As the subject came before the European Parliament Mrs Foster, who has tabled an alternative motion, said,
"Additional charges should always be a last resort. The proposed establishment of a 'guarantee' fund would inevitably have to be funded by the consumer, meaning that passengers would be required to pay even more for tickets. Given the rarity of airline bankruptcies, even in the midst of a recession, this approach is like using a sledgehammer to crack a nut. At the very least a proper impact assessment should have been a pre-requisite before even discussing a 'guarantee' fund.
"The respective National Aviation Regulatory Authorities are more than better equipped to monitor the performance and financial status of airlines and should be fulfilling their obligations to red flag those at risk.
"Also, there should be an obligation for airlines to inform passengers when they purchase flight tickets, about available insurance options and other protective mechanisms.
"There are better ways of protecting passengers than a blanket rise in passenger duties. The resolution that we are putting forward offers the best way of proceeding."