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EU Backs Airline Financial Protection Scheme

12th July 2007 The airline industry looks set to be forced to offer financial protection for its passengers after the European Parliament voted in favour of new regulations. Like tour operators and travel agents, airlines will now have to protect their customers in light of a company failure. Many airlines had resisted such a scheme in the past.

According to a European Commission study, more than 63,000 passengers were stranded abroad between 2000 and 2005 due to airline bankruptcy.

The European Parliament also concluded that airlines should have to advertise their fares inclusive of taxes, fees and charges and give equal access to fares across the whole of Europe.

Before being officially put into place, the regulations have to be ratified by the European Council, which is set to meet on October 1.

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