Airlines to remain outside ATOL for at least 2 years

The travel trade is united in calling for airlines to be included in the new ATOL reforms, ABTA said today, but any hopes that the Government might act on its demands have been dashed.

Speaking at a summit of business leaders staged by travel accountants Elman Wall yesterday, Civil Aviation Authority deputy director of consumer protection David Moesli said it was not within the Government's power to bring airlines into the scheme.

He said such a move would require primary legislation, which might happen by 2013, but he said the Government couldn't make any promises. "A government can never promise to deliver on primary legislation….the best you will get from any government is a statement that it is their "intention"," said Moesli.

"The Government "intends" to bring airlines in in a couple of years, say 2013, but that is not an absolute promise because a government can never give such a promise."

Responding to concerns from the trade that the January 1 deadline for ATOL reform was too soon, Moesli said the Government was keen the changes should be in place for the start of the main booking season.

"It wants to raise more money for the Air Travel Trust Fund so it is keen to start Flight Plus in time for the January booking period," he said.
In order for the deadline to be met, Moesli acknowledged that the Government would have to make an announcement on ATOL reform by early October.

ABTA said today that all the major industry players were in agreement that the January 1 deadline was unrealistic.

Comparing the positions of the AAC, Advantage, ATIPAC, GTMC and the SPAA alongside its own submission to the Department Transport's consultation on ATOL reform, ABTA found the travel bodies also agreed with the following:

 *   Business travel should be exempted
 *   Closing the loophole on agent for the consumer sales
 *   Noting that microbusinesses should not be excluded
 *   Broadly supportive of proposals for ATOL certificates and Agency Agreements but all share concerns about implementation

"It is clear from industry submissions that the travel sector wants airlines in and business travel out," said ABTA chief executive Mark Tanzer.

"ABTA has called for an extension of consumer protection for many years and although we are pleased that the Government is taking action on ATOL reform we have serious concerns that if not modified the proposals may reduce consumer protection and damage travel businesses."

CEO of Advantage and ABTA chairman John McEwan added: "ATOL reform will only be successful if airlines are brought into the scheme of protection.”

By Linsey McNeill & Diane Evans