Yesterday we were reminded that all the regulation of the air transport industry does not stop airlines and travel companies going bust, and does not even get all their passengers home in an orderly way.
I appreciate the CAA does not have the same duties on solvency and liquidity for airlines that the Chancellor and his regulators have for banks. Nor am I advocating more regulation.
I do think, however, we should ask why such an expensive system with substantial bonds from the regulated airlines still cannot get everyone back in an orderly way? Why did the Administrator have to ground all the planes and pilots of the affected airline rather than using them to sort out the mess as the first claim on the bonded money?
I understand that the Directors of the company are to blame for getting into the financial mess in the first place. From the moment they admit they have failed, we should look to the Adminstrator and Regulator to run things better. That they failed to do as far as many passengers are concerned. Regulation just isn’t what it’s cracked up to be these days.