The requirements would apply to about a dozen UK-based carriers and would ensure all passengers stranded when a British airline fails are brought home, sources close to the discussions have told TTG. The arrangement would not extend to refunds in advance of travel.
It is unclear at this stage how the scheme would be funded, but it would run parallel to existing Atol protections.
Calls for a formal repatriation scheme intensified after the collapse of Monarch in October 2017 when the government instructed the CAA to repatriate all passengers, irrespective of whether they had Atol protection, at an eventual cost of about £40 million to the taxpayer.
