Civil Aviation Authority

Apart from the extreme example of manned space missions, air travel is probably the most heavily monitored and regulated mode of transport on earth. Although statistics show that most people suffer serious and fatal injury as a result of motoring accidents, this is because at any one time, there are far, far more people on the roads than there are in the middle of an airplane journey.

Safety in aviation unsurprisingly attracts much more attention because the dangers are more obvious and, when something does go wrong, the effects can be disastrous and headline grabbing especially if an accident occurs over a heavily built up area.

It goes without saying therefore that those involved at the sharp end like airline pilots and air traffic controllers have to go through stringent selection procedures to make sure that they have the right temperament for the job well before they even start technical training.

Sadly for them but sensibly for the rest of us, it's largely a case of many being called but only a few being chosen. Yet, like an army on operations, the frontline troops who make it through the selection process have huge back-up behind the scenes.

In the UK, most of this back-up is provided by the CAA, the Civil Aviation Authority and passengers using air travel are effectively in their hands from the minute they arrive at the airport to the minute they leave it after their return. This almost comprehensive responsibility is not purely concerned with the airworthiness of aircraft and their crew. The organisation also runs the ATOL scheme which ensures that passengers can get home in the event of an airline suffering financial collapse.

The effort that goes into maximising passenger safety is based on the cumulative experience and knowledge gained from the circumstances causing past accidents.The result is that only 130 air accidents were recorded worldwide in 2010 compared with 200 in 2001when there were significantly less flights made and passengers carried.

Here in the UK, the CAA is widely regarded as one of the best regulators in the world and it is frequently consulted by its younger counterparts overseas. Over the years it has built up a rigorous roster of checks involving the medical condition of pilots and flight engineers, the qualifications of aircrew, air traffic controllers and maintenance engineers and the state of the country's airports.

It looks into everything from the flight simulators used to train pilots, potentially dangerous goods carried as luggage or freight and what it likes to call " Human Factors". These include things like pilots being affected by stress and fatigue or unruly behaviour by passengers.

Away from large-scale commercial aviation, the CAA is also responsible for such esoteric areas as flying displays, civilian parachuting, hot air balloons and airships.

The recent demise of the XL Group, a major UK travel company with its own airline and trading under established brands such as Kosmar and Medlife Hotels is an unnerving event for all holidaymakers. With over 20 airlines ceased trading in the past year, how can we be sure that we will not be placed in a similar situation of loss when we book with any travel company or airline?

It is interesting that the statement on the XL group's website said: "The companies entered into administration having suffered as a result of volatile fuel prices, the economic downturn, and were unable to obtain further funding." In a comment from rival holiday firm TUI, it is clear that the industry mandarins are warning that due to rising fuel prices, and less money available from banks due to lending restrictions brought on by the credit crunch "airlines with less than robust business models" - such as XL - were now failing. Clearly the mandarins of the bigger holiday companies are clear that their business models are indeed robust, and we should believe them of course.

But clearly, company size is not everything - XL was actually the 3rd largest operator in the UK - and so it is important always to understand what financial protection is available in the event that the worst happens and your holiday company fails.

In the UK, the Civil Aviation Authority oversees the ATOL licensing system whereby any operator or airline offering holidays by air pays into a bonding scheme based on its business turnover. Funds thus generated are used to repatriate holidaymakers, or refund money paid in advance for such bonded holidays. It seems even more important in these difficult times, to make sure that you ensure every element of your holiday is ATOL protected.

However, it is important to know that this scheme is no a "catch-all", when a holidaymaker has booked a "flight only" or a flight and accommodation separately. In the XL demise, it is estimated that more than 10,000 people were not ATOL protected because they booked separate flights and accommodation or flights only. In these days of do-it-yourself holiday packaging via separate bookings via the internet, this situation is unlikely to improve unless legislation changes.

Many consumer rights groups are vociferous in their demands that the Government should take steps to ensure all holiday companies must belong to the ATOL scheme, which offers package holiday makers financial protection. However, it is difficult to see how a scheme run via the Civil Aviation Authority should be able to cover elements of a holiday such as hotels which are purchased separately and are not in an "Aviation" remit.

Because such "Do-It-Yourself" holidays aren't protected by the ATOL scheme, it is important to think about alternative protection. Examples are:

Book with a credit card: But be careful here, because you still might not be covered. You must spend at least £100 on each element of the holiday - and charge cards or debit cards do not offer any protection.

Take out travel insurance: Look for policies which cover against holiday company or holiday provider insolvency. However, it is vital to check the small print, as many policies don't include this cover.

And also remember the important fact that you can only be covered for the component of your holiday that's gone out of business. You can't claim for the others and so you will need to rebook the missing element - possible at a higher price, or possibly with difficulty of any availability at all.

Sometimes, it seems much easier to book a complete package supplied by a single ATOL bonded operator - but taking these few small steps will at least ensure you have the same financial protection outside the scheme, even if you are more "on your own" in the event of a business failure.