Millions more package holidaymakers flying out of airports around the UK, including Heathrow, Gatwick and Stansted, could soon get financial protection if their operator collapses.

The Government said that while the chances of a holiday company going bust are very small, new plans will mean that the impact of such an event will be reduced even further.

Aviation minister Theresa Villiers said the Government is consulting on proposals that would mean up to six million extra holidays would be covered by the Air Travel Operators’ Licence (Atol) scheme.

Although many holidays involving flights are currently covered against airline or tour operator collapses under the Atol scheme, which is run by the Civil Aviation Authority, a number of air travel trips are not protected and it is these travellers that the plans would help.

The problem has been highlighted in recent years after a number of firms collapsed amid the credit crunch, leaving tourists stranded. Mrs Villiers said the frustration and disappointment it caused holidaymakers had shown that the Atol scheme was in urgent need of reform.

She added: “We have always been clear about our commitment to modernising the Atol scheme, and these proposals are an important step towards achieving just that. As well as ensuring up to six million additional holidays are protected, these proposals will help steer the scheme’s finances on to a more sustainable path for the future

“We are also making an important step forward on the debate on delivering a wider reform of Atol in the future.”

Copyright © Press Association 2011

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