Collective Commentary about the New Package Travel Directive

894 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE The organiser or trader has committed an act of bankruptcy; The Commission for Aviation Regulation has reasonable grounds for believing that, having regard to all the circumstances, the organiser or trader is unable to, or has failed to, carry out the obligations under this Act owed by it to travellers in respect of package travel contracts or linked travel arrangements. ” 46 . 7.1.2. Requirement to provide Security in respect of Packages Section 22(1) of the 1995 Act (as amended) requires organisers to provide security “for the refund of all payments made to the organiser by or on behalf of travellers where the travel services included in the package travel contract are not, or will not be, performed by the organiser, as a consequence of the insolvency of the organiser” . Section 22(2) further provides that “ Where the carriage of passengers is included in a package travel contract, an organiser shall ensure that the security referred to in subsection (1) shall also provide for the costs of the repatriation of travellers in the circumstances referred to in that subsection”. As an alternative to a refund, Section 22(3), provides that “Where the travel services included in the package travel contract, are not or will not be performed by the organiser as a consequence of the insolvency of the organiser, the continuation of the package, on the same contractual terms, may be offered to the traveller as an alternative to a refund by,(i) another organiser,(ii) by the entity providing the security for the insolvent organiser, or (iii) the entity responsible for the administration of the security provided by the insolvent organiser” . Reference to such a possibility is made in Recital 39 of the Directive 47 . 7.1.3. Requirement to provide Security in respect of Linked Travel Arrangements Section 22(A)(1) of the 1995 Act (as amended) provides that traders facilitating Linked Travel Arrangements shall provide security “for the refund of all payments received by the trader from travellers where a travel service which is part of a linked travel arrangement is not, or will not be performed as a consequence of the insolvency of the trader” . Further, where the trader is the person responsible for the carriage of passengers, the security shall also provide for the costs of the repatriation of travellers and the financing of accommodation prior to the repatriation 48 . 46 Section 3(1)(b) of the 1995 Act (as amended). 47 Extract from Recital 39 of the Directive, page 7 … “ it should be possible to offer travellers the continuation of the package ”. 48 Section 22(A)(4) of the 1995 Act (as amended).