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Financial Protection under the PTD

In addition to the liability requirements outlined above, the PTD also requires the organiser to obtain security over the entirety of the package in the event of their own and/or supplier insolvency by way of either insurance, bonding or the setting up of a trust account [17], in order to ensure the continuation of the package or the repatriation of the consumer to the place of departure, where applicable. 

The inherent interdependency between carriers in order to facilitate a seamless multi-modal ecosystem carries with it an inherent risk of the transport chain being interrupted due to the insolvency of one carrier. Whilst the financial protection model under the PTD will not of itself necessarily tackle the organisational issues that will arise in the event of insolvency of one carrier, it will provide the remaining carriers (or the organiser) with the financial means to make suitable alternative arrangements for the continuation of the passenger’s journey – ensuring that any disruption is minimal.

[17] The precise methods are not prescribed by the PTD but are a matter of national law. See for example the ATOL Regulations of England and Wales.