An independent review commissioned by the UK Department for Transport has recommended a levy of ‘less than 50p’ per ticket to pay for airline failures.

The proposed levy will ensure the creation of a Flight Protection Scheme fund to fly travellers stranded abroad back to home when their airline goes bust.

The Airline Insolvency Review final report made a series of recommendations to ensure consumer protection in the event of an airline or travel company failure.

The review was set up after the collapse of Monarch Airlines in October 2017.

Following the collapse, the Civil Aviation Authority (CAA) repatriated 85,000 passengers in what was the UK’s largest peacetime repatriation operation.

“Our recommendations to government set out a series of practical suggestions to ensure that passengers are protected.”

Another major airline failure that required the CAA to assist the repatriation of passengers was that of XL Airways.

Chaired by Peter Bucks, the review was also recommended that the UK’s airline insolvency regimes should be reformed to make sure an airline’s own aircraft can be used to repatriate passengers in case it becomes insolvent.

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Bucks said: “We know passengers expect to be protected from being stranded overseas if their airline should collapse, but in practice, each year many people fly without any such protection.

“Although airline insolvencies are relatively rare, as we have seen in recent months they do happen – and at times, have required the government to step in to repatriate passengers at great cost to the taxpayer.

“Our recommendations to government set out a series of practical suggestions to ensure that passengers are protected, particularly in the event of a large-scale collapse like Monarch.”

British holidaymakers are protected under the ATOL scheme when they book a holiday with a UK ATOL holder.

The scheme ensures passengers do not lose money or become stranded abroad when their ATOL holder collapses.

Welcoming the review, UK Transport Secretary Chris Grayling stated that the government will work to swiftly introduce the reforms recommended in the report to safeguard both passengers and taxpayers.

The department has also invited public views on the report’s recommendations.