A Stansted-based airline has hit out at proposals which could see passengers pay up to £2 per ticket more to prevent them getting stranded if an airline collapses.
An Air Travel Organisers' Licensing (ATOL) scheme currently protects travellers on package holidays from airlines or tour companies which cease trading, or defraud them of money.
But the House of Commons Transport Committee says it does not protect people who book flights independently.
If introduced, the proposed inclusive scheme would add between 50p and £2 to each flight ticket.
But cut-price carrier easyJet hit out at the proposals, branding them 'lunatic'.
A spokeswoman said the new levy would only heighten the risk of bankruptcy for airlines with tight margins.
"Charging travellers unnecessarily does nothing to reduce their exposure to failing airlines, or improve awareness of the financial protection available to them.
"On top of sky-high insurance costs and soaring oil prices, European airlines need this additional cost burden like a hole in the head," she said.
The committee of MPs says the existing measures need to be replaced because they are failing to protect increasing numbers of passengers.
It said the Government must bring in new measures because airline collapses were likely to happen again.
Published Wednesday July 28, 2004
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