The problem with an ATOL style bond is that it is funded from industry. You'd need at least £10m in it now to cope with the potential losses in the next 6 months. And who would pay? Would modular ATOs who operate a responsible pay-as-you-fly scheme be required to pay into a fund to protect customers of their competitors who choose to take huge payments up front? Its shocking the effect this has on the youngsters who have worked and saved, only to have all their money stolen and their dreams trampled on. For shame.