Tax refund for XL flight victims

Monday, 22 September 2008 02:00

XL customers left grounded when the travel firm went to the wall could be line for a £1 million tax refund.

The Association of Independent Tour Operators (AITO) is urging the government to ensure Air Passenger Duty (APD) is refunded to XL customers who have lost out financially following the collapse of the company.

The organisation finds direct customers of XL have paid around £1 million in APD - which is collected by airline for the government - for flights they will now be able to take.

AITO calculations find, of the 200,000 advanced bookings taken by XL, 80,000 could be flight only bookings.

If with the minimum APD payment of £10 per person, the AITO suggests administrators Kroll could be holding £800,000.

This money should now be returned finds the AITO.

"The likelihood is that it's closer to £1 million in advance tax collected by XL for the government," explained Says Derek Moore, chairman of AITO.

"It is a £1 million windfall for the administrators of a failed company and we don't believe this is right."

The anomaly, in terms of consumer protection, has been created by the web.

Many consumers now book direct with airlines, which - despite selling holidays and flights in exactly the same way as tour operators - are not subject to the same financial protection rules as tour operators.

"The only sensible way forward," added Mr Moore, "is to rationalise the rules and to ensure that airlines are brought within the consumer protection remit of ATOL.

"We shall be lobbying government on this front and on the APD issue."

Chris O'Toole

• Tags:
• consumer rights cowboys
,
• household
,
• news