Air Travellers’ watchdog calls for holiday levy

Thursday, 11 Jul, 2002 0

The Air Travel Insolvency Protection Advisory Committee (ATIPAC), has called on the Government to speed up the introduction of a levy to ensure that travellers continue to be protected against tour operator collapse.

In its annual report published yesterday, ATIPAC, which includes members of the travel industry, the Civil Aviation Authority and consumer and independent representatives, said that it is concerned that in the wake of the disturbances to the world-wide travel industry there is still no legislation in place to replenish the Air Travel Trust Fund, which backs up ATOL bonds and provides the ultimate financial safety net for holidaymakers.

John Cox, ATIPAC’s Chairman, said: “The last few months have been extremely difficult for the travel industry, but UK holidaymakers have the assurance that if anything goes wrong with their arrangements then the ATOL scheme provides the key safeguard, backed by the Trust Fund. The Government now has an opportunity with its planned Air Transport White Paper to introduce legislation to ensure that the Trust can continue to provide that safeguard, and we urge it to take this opportunity to place this key public protection system onto a firm footing for the future.”

In its report the Committee also expressed concern that the clear message for the public on ATOL protection is becoming blurred at the edges by firms which sell air packages on a split contract basis and that as a consequence some holidaymakers are in danger of frustration and disappointment and may ultimately lose their money by entering into such arrangements.

ATIPAC estimated that up to one million consumers are booking flights and accommodation believing, wrongly, that they will be reimbursed if one or other of the companies providing their holiday components fails and that they will be brought home if that failure occurs while they are abroad. The Committee said that this practice is creating confusion for the consumer and urged Government action to ensure that the integrity of the current ATOL protection arrangements are retained across the travel industry.

ATIPAC said that even with an upturn in business it believes that the full effects of the incidents in the US have still to be seen by both industry and consumers. It concluded: “the need for a comprehensive financial protection system for travellers remains particularly acute both now and into the future”.