The British government said today it would not implement a suggested £1 levy on all air passengers leaving the United Kingdom.
Britain's Civil Aviation Authority had put forward the plan to fund protection for travellers if their airline went bust.
"The attractions of the CAA scheme are outweighed by the disadvantages," the Department for Transport said.
The department said it did not believe a compulsory scheme was appropriate, adding that the British government did not organise refund schemes for other industries such as retail, building or financial services.