The Civil Aviation Authority has lodged an appeal after losing a case against Travel Republic over alleged breaches of ATOL regulations.
The CAA has today asked a District Judge to begin the process to appeal his decision in the case of CAA v Travel Republic and Kane Pirie.
The case concerns the protection of the public who book flight inclusive holidays.
A statement said: "The CAA considers it must do what is necessary and all that it can to try to ensure that when someone books an air package holiday they receive the protection that Parliament and the EU has decided they are entitled to, and hence are protected by ATOL for the whole of that package.
"We have therefore decided to seek clarity for both holidaymakers and industry from a higher court as swiftly as possible."
In the period before an appeal is heard the CAA said it would continue to strictly enforce regulations "and will do so in part based on the Government guidance issued in January 2008 following the decision in the Court of Appeal on CAA v ABTA".
That decision remains as the definitive judicial statement as to the meaning of a “package”.
CAA will also continue to monitor firms that sell air holidays without an ATOL.
"If it considers that they are breaching the regulations then it will continue to refer cases for investigation," the authority said.
by Phil Davies
