CAA asks for comments on ATOL issue

Friday, 06 Sep, 2002 0

The CAA is urging agents and trade bodies to offer their comments on the amendments it wants to make to Air Travel Organiser’s Licences.

ATOLs insure holidaymakers, should the company go bankrupt. However, a mismatch between the Package Travel Regulations and the ATOL Regulations means that firms selling under “split contracts” can legally remain unbonded, leaving customers unprotected. The proposals from the CAA will block this loophole and see that all agents selling air package holidays hold an ATOL.

A spokesperson for the CAA told TravelMole that it has so far received 30 responses, and is inviting comment from both licensed and unlicensed companies.

CAA director of consumer protection, Helen Simpson, said: “What we’ve proposed is a practical solution that doesn’t extend regulation unnecessarily. We want to work with the trade bodies to ensure that there’s consistent protection for people who buy package holidays, and that we use existing bonding schemes as far as possible”.

The CAA consulted with the Department of Trade and Industry and Office of Fair Trading over the proposed legislation, and says the change will not affect airline sales to the public. Agents have until 23 November to comment on the proposals, which can be viewed on the ATOL website. The CAA will make the recommendations to the Department for Transport in December and hopes the new Regulations will be in effect by April next year.

The CAA reported that in the last 16 years, ATOL has managed 330 tour operator failures, rescuing 190,000 people from being stranded and giving refunds to more than a million others at a total cost of £159 million.

If you wish to comment respond by 23 November to: Ray Wells, Consumer Protection Group, K3, CAA House, 45-59 Kingsway, London. WC2B 6TE. Or by e-mail to: [email protected]

Travel agencies can find out whether they need an ATOL by selecting the "Trade Information" section on the ATOL website.

Read our previous stories:
11-July-2002 Number of ATOL holders ceasing trading doubles
11-July-2002 Air Travellers’ watchdog calls for holiday levy
3-April-2002 CAA updates ATOL disclosure rules
2-April-2002 CAA pleased with number of ATOL renewals