Air Travel Organiser Licence [ATOL] bonds will be replaced with a £1 levy, the government has confirmed.
The new scheme will be introduced from April 1, 2008 and follows an announcement in August agreeing to the change “in principle”.
The announcement by transport minister Jim Fitzpatrick was welcomed by ABTA which will run a masterclass on the issue at next month’s Travel Convention in Tenerife.
ABTA chief executive Mark Tanzer said: “We are very pleased that the Government has confirmed this important change to the funding of the ATOL scheme.
“We will now look to the Government to ensure that the system is effective for consumers as well as delivering cost benefits to our members.
“ABTA will also be looking for ways through which the scope of the scheme can be extended to cover all forms of travel arrangements replacing the current fragmented and inconsistent state of financial protection, which leaves millions of customers’ money and holidays at risk.”
Mike Monk, ABTA’s head of financial services, will chair the masterclass at the convention.
The Civil Aviation Authority will explain to the travel industry how the new ATOL levy will work, and how it will affect businesses and administration processes.
by Phil Davies
