Originally Posted by
newfoundglory
I am wondering where this might leave the caa/atol and the air travel trust. The figures being banded around are about £170million in the trust currently, plus a further insured £400million (whether self-insured by government is unclear)
Going to be hard to get an exact figure, however, in the event of collapse that isn't going to leave anything left going forward.
I think what continues to amaze me is there must be a number of people still travelling on holidays without insurance and/or cover for airline failure.
The ATOL fund wouldn't necessarily be cleaned out. The 160,000 will include both ATOL and non-ATOL protected holidaymakers abroad. If the cost of repatriation was, say, £150m (£600m seems way too high when compared pro rata with the Monarch figure - that equates to £3,750 per pax) and let's say 2/3 were ATOL protected, the ATOL fund would pay £100m leaving £50m for the govt to pick up (assuming they paid for non-ATOL protected repatriates as in the Mon case). So the fund would still have £70m left, and we don't know if TCX had lodged a previous bond with the CAA that may increase that figure. Even allowing for a fair amount of leeway in these guestimates, the cost to the govt would be quite a bit less than £200m I suspect, and they may be able to recover some of this - don't forget there will be considerable money on the balance sheet as there was with Monarch as it will have just hit its high point for the year.