Following the collapse of Monarch and Air Berlin last year, the International Air Transport Association ("IATA") has suggested that bankruptcy laws should be reviewed globally in order to allow a “reasonable timeframe” for airlines to continue operating after entering insolvency to allow more passengers to complete their journeys.
Repatriating more than 100,000 Monarch passengers is estimated to have cost the British government about £60 million. The German government loaned €150 million to keep Air Berlin flying for two months. The UK has launched a review of consumer protection in the event of an airline or travel company failure in the wake of the Monarch collapse.
The European Travel Agents and Tour Operators’ Association last month said the EU Commission should introduce a mandatory mechanism to protect passengers against airline failure, with the cost borne by airlines and included in ticket prices. IATA rejected the idea of a rescue fund to repatriate customers stating this would distort competition. IATA stated that members in Europe already have a voluntary agreement to offer rescue fares to those needing to return home.