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It ends up being a subsidy when the largest provider collapses and the funds don't cover the problem. Who pays then? Oh, the government.
by greglindahl 7y ago
It ends up being a subsidy when the largest provider collapses and the funds don't cover the problem. Who pays then? Oh, the government.
- consp 7y agoWho are also first in line to collect when the company goes into bankruptcy and there is still money somewhere.
- michaelt 7y agoGiven that the Air Travel Trust has £170 million of cash and £400 million of insurance; that when Monarch Airlines failed they could repatriate "around 110,000 passengers" for £16.3 million [1]; and that Thomas Cook's collapse leaves about 150,000 holidaymakers [2] in need of repatriation; it seems unlikely the funds will fail to cover the problem. There might be other expenses, outside the scope of the ATT, that the government ends up paying - there are estimates as high as £600 million [3] - but arguably that's a sign the scope of the compulsory insurance scheme should be broader, not narrower :) [1] http://publicapps.caa.co.uk/docs/33/ATT_Accounts_2018.pdf http://publicapps.caa.co.uk/docs/33/ATT_Accounts_2018.pdf [2] https://www.bbc.co.uk/news/business-49791249 https://www.bbc.co.uk/news/business-49791249 [3] https://www.bbc.co.uk/news/business-49781920 https://www.bbc.co.uk/news/business-49781920
- deleted 7y ago[deleted]