26
Challenges persist in recovering costs from third parties after airline insolvencies.
Conclusion
We asked the witnesses whether there had been any learning from the experiences of airline collapses about industry insurance schemes and also how government manages the risks around recuperating money from private insurers. UKGI suggested that there was some work undertaken to identify where there might be similar risks but could not recollect where that had got to.77 The Treasury’s subsequent letter explained that the cases of Monarch and Thomas Cook highlight the challenges in recovering costs from third parties when government steps in. It said that the Department for Transport is “taking the time to thoroughly consider the most appropriate package of measures to take forward” in response to the Airline Insolvency Review, which was published in 2019.78
Government Response
A response document is linked to this report, dated 28 May 2024. Response attribution to this conclusion has not been verified. Read the response document.
Source
Committee
Public Accounts Committee
Report
Twentieth Report - Monitoring and responding to companies in distress
13 Mar 2024
HC 425
Addressee Bodies
HM Treasury
Timeline
Recommendation age
2.5 yrs
Report published
13 Mar 2024