ABTA is putting new pressure on the Government to reform the ATOL system.
With the Department of Transport proposals on ATOL reform rapidly approaching, ABTA is urging the Government not to waste this golden opportunity to radically reform the scheme.
ABTA believes:
_ Airlines should be included in schemes of financial protection
_ Financial protection schemes should be comprehensive and clear and transparent to both customers and the trade
_ The costs of providing the security provided by travel companies should not be at a level that drives customers to choose cheaper travel options outside of the protected regime
_ Financial protection schemes should not increase travel companies’ contractual, taxation or other liabilities
_ There should be effective and robust enforcement of regulations implementing financial protection schemes
_ The statutory scheme of financial protection should operate without creating unnecessary duplication of protection costs.
The association said the failures of Excel in 2008, Freedom Direct in 2009, Goldtrail and Sun4U in 2010 all revealed the limitations of the current ATOL scheme.
ABTA chief executive Mark Tanzer said: “Positive reform of the ATOL scheme is long overdue. We must reinforce consumer confidence in the travel industry.
“The Government clearly agrees that a modernised, easy to understand system is essential. If it wants to achieve that result it must pay attention to our recommendations. Our customers and our Members deserve better than the unfair, unbalanced confusion that we have suffered in recent years. An opportunity for real and beneficial change has arrived, it must not be wasted.â€
By Bev Fearis
