CAA STORY

Pressure is growing on the Civil Aviation Authority to keep its word and switfly clarify whether refund credit notes will have ATOL  is being urged to issue advice over Refund Credit Notes, now the busy ATOL renewal period is out of the way.

In July, the CAA issued new guidance stating that RCNs – introduced as a temporary measure to help the industry deal with the tsunami of refund requests – would benefit from ATOL protection up until 30 September 2021 if they were issued between March 10 2020 and September 30 2020 for an ATOL-protected booking that had been cancelled due to Covid-19.

However, the September 30 cut-off date has now passed with no update from the CAA on whether protection will be extended for RCNs issued after this date.

It was thought the CAA might provide clarification on RCNs after the confirmation of September ATOL renewals, announced yesterday.

Former ABTA Chairman and Advantage CEO John McEwan described the situation as ‘messy’ given the uncertainty it has created.

"In my opinion, a good solution would be for the CAA to say it will extend the validity of RCNs issued through to the end of March 2021. This would tie in with ABTA’s position. There would however continue to be the same period of protection for consumers that is currently in place, that is to 30 September 2021."

"I would like to see the CAA reach an alignment with ABTA on this as it is important we get a unified approach," he said.

McEwan said he believed RCNs should cease to be issued beyond 31 March 2021 and a run-off period of six months beyond that date for customer protection would be adequate.

"It’s a very busy time at the moment for the CAA, but I would have expected a statement by now to make it clear to the industry what is happening.  Let’s hope we see something soon."

Sunvil Holidays’ Chairman Noel Josephides said he understood the CAA was in a difficult position, but it meant people were effectively operating "in limbo".

"They [the CAA] know they need to help, but they are reluctant to do it. Either they want to help us survive or they don’t. The feeling in the industry is that the government couldn’t care less."

"Nobody can understand how a decision on this couldn’t have been taken four weeks ago. The situation hasn’t changed. Now in theory we can’t issue anything. I think vouchers will be issued which can’t be backed legally. It’s a risk, but people are desperate."

A CAA spokesman confirmed no further advice had as yet been published.