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CAA gives trade lifeline over ATOL changes
The CAA has agreed to treat May as a test period for the new ATOL regulations.
It issued a statement today saying it had listened to the travel industry about the limited preparation time and has agreed several measures during May to help the trade adapt.
"This proportionate approach to the changing regulations allow industry increased time to prepare during one of the busiest points in the year," it said.
May will be treated as a transition period where agents will be given help and advice.
In addition, the Air Travel Trust will consider "sympathetically" consumer claims for package and flight-only sales, where sales were made by agents lacking agency agreements or where the documentation falls short of the new requirements.
"Under the new legal framework, if a business making Flight-Plus sales does not hold an ATOL and one of its ATOL-holding seat suppliers fails, the ATT would not meet its customers’ claims," it said.
"These would be the responsibility of the Flight-Plus business. However, the ATT has decided that during May, provided an unlicensed Flight-Plus business has applied for an ATOL and is making satisfactory progress toward obtaining it, the ATT will meet claims arising from the insolvency of any of its ATOL- holding seat suppliers, under the same terms as if they held an ATOL."
However, the trade has been warned that from 1 June 2012 the CAA will revert to its normal enforcement stance and ATT payment policies.
ABTA CEO Mark Tanzer said: "This is a common sense decision and one that will enable more businesses to comply with the new regulations.
"However, even with the extension the timescales are tight and travel businesses still need to move quickly to ensure they meet full compliance by 1st June."
by Bev Fearis
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Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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