This should be looked-on as good news for the industry....It is a brake on "the race to the bottom" Every carrier will have to put uptheir ticket-price to cover the possibility of a payout, but, provided their reliability doesn't take a sudden nosedive, it means that extra money will be sloshing around in their bank, improving cash-flow.
There is no reason why the Government or CAA could not legislate a Bond for the"shadier" operators, in the same way Landlords are forced to deposit tenants' bonds with an approved party.
The increased price wil lalso settle the argument that low prices encourage more people to fly.
I don't see any problem, other than the seeker of really low fares is now being denied the risk of "taking his chance" with an absolute barebones, rock-bottom operator.