Speaking to BBC One’s Sunday Morning programme on 5 June, Shapps called on the aviation sector to implement a scheme similar to the one adopted by the railways.
His comments came after further flight cancellations left some holidaymakers unable to get back to the UK over the weekend. He also repeated a call for airlines to stop overbooking flights.
"We need the industry to deliver. It is very important that flights aren’t oversold, and I want to make sure there is automatic compensation for passengers," Shapps said.