easyJet, Europe�s leading low-cost airline, today called on the UK Government to resist calls for a �1 levy to be imposed on UK passengers in order to fund the CAA�s shrinking ATOL scheme for tour operators.

The CAA has today revealed that coping with repatriations and refunds resulting from a major tour operator failure would cost around �250 million. The CAA proposes paying for this fund through a �1 levy per passenger on all UK originating international flights.

easyJet condemns the CAA�s plans to make scheduled airlines pay for the failings of tour operators. There is no doubt in easyJet�s view that penalising airlines and their passengers by imposing a blanket levy regardless of the fare paid or the financial viability of the carrier flown is a highly burdensome and costly approach to the financial protection of air travellers. Nevertheless, easyJet has always supported the CAA�s objective of plugging the gap in consumer financial protection - too few people go on holiday with adequate travel insurance yet most travellers expect to be covered for most eventualities when this is not the case. easyJet believes that, instead of introducing an old-fashioned tax to fund CAA coffers and bail out the weakest players, the UK Government should opt for alternatives that provide a win-win situation for consumers, airlines and the Government together.

This is why easyJet has repeatedly condemned the CAA�s proposal of a �1 blanket levy on air travellers on the basis that �1 for an easyJet passenger is: o more onerous on airlines offering low-fares: The �1 levy would represent a 2.3% addition to easyJet�s average fare compared to 0.5% of the average British Airways fare o discriminatory given that easyJet is a financially secure and profitable airline and our passengers are being asked to pay for those flying with financially-insecure airlines o does nothing for consumers by raising the cost of air travel and lulling them into a false sense of protection when taking out travel insurance will still be very much required o a costly intervention from Government when more efficient alternatives exist by the industry easyJet does not see why the CAA insists on managing the means by which protection is provided when airlines can provide this far more efficiently, on a much wider scale and at a cost much more suited to their businesses, and this without penalising carriers and their passengers unduly.

This is why easyJet has consistently called for the following alternatives to be pursued instead by the UK Government: o impose an information requirement on all airlines to leave passengers in no doubt as to what level of cover applies o draw up an industry code of practice for the repatriation of stranded passengers along the lines of easyJet�s rescue package for EUJet passengers in July (see note) o give more powers to CAA to improve its financial monitoring capability and therefore its ability to manage foreseeable failures o leave airlines to offer the cover best suited to their business through the commercial products already on offer to them in the insurance marketplace. Toby Nicol, easyJet Communications Director, said: �We agree that consumers should be protected against the financial failure of airlines - but we disagree violently with the solution proposed by the CAA. Flat-rate charges discriminate against those airlines offering the lowest fares and mean that short-haul passengers would be cross-subsidising the cost of repatriating long-haul passengers. I don�t see how this is to the benefit of easyJet customers and remain convinced that the CAA�s only real incentive to get scheduled airlines into its scheme is in order for our passengers to fund it. easyJet will continue to make representations to the UK Government and champion consumer interests.�

-ENDS-

Contact: easyJet press office +44 1582 52 52 52

Note to editors: 1. The CAA will be holding a Seminar on Thursday 22 September 2005 from 15.15 to 17.00 to set out its latest advice to Government on the future of financial protection for air travellers. The Seminar will outline the work the CAA has been carrying out to evaluate options for financial protection. 2. Following the announcement in July that EUJet had suspended all of its operations, easyJet offered those passengers stranded at their European destinations, a special rescue fee of �25 (including all taxes and charges) to return home to the UK and from the UK to Ireland. 3. From the companies latest annual report and account, easyJet�s average fare is �42, British Airways fare is �181.