United Kingdom
United States
Asia Pacific
Failed ATOL holder ordered to repay £200,000
A director of a failed operator found to be overtrading his ATOL licence has been ordered to refund more than £200,000 paid out after the company collapsed six years ago.
In a test case brought by the Civil Aviation Authority, former Dayrise Holidays director Vassilis Kettiros has been told to pay back the sum paid out to customers by the Air Travel Trust when the ATOL-holding company failed in 1998.
He has been ordered to pay a total of £234,573 including interest, plus costs, following a hearing the Central London County Court.
The ruling was made after the CAA produced evidence that the Greece and Cyprus operator had overtraded its licence and served notice that it would call in his guarantee.
North London-based Dayrise was licensed to carry 30,000 passengers. But its £1 million ATOL bond proved insufficient to cover all claims after it failed in September 1998. The CAA was forced to make a call on the back-up Air Travel Trust consumer protection fund, which paid out £204,605.
Mr Kettiros and his father, also a fellow director, had provided guarantees to the CAA which undertook that if the company overtraded its ATOL authorisation and then failed, they would reimburse the Air Travel Trust, the authority said.
The matter was taken to court by the trustees of the Air Travel Trust after Mr Kettitos refused to meet his obligations under the guarantee, and a judgement was obtained against him. Mr Kettiros made an application to have the judgement set aside but failed to follow this up and it was struck out on 7 June.
CAA consumer protection group deputy director David Moesli said: “This is the first time that an overtrading guarantee has been tested in court and we’re glad that there was such a clear ruling as to liability. In most cases we’ve been able to enforce guarantees out of court, but where we’re unable to do so we will take court action.”
The Air Travel Trust went into the red in 1996 following a number of large company failures in the early 1990s. The Trust is more than £9 million in deficit but a credit facility is in force secured by a government guarantee of £21 million.
Report by Phil Davies
Related News Stories:
Phil Davies
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Turkish Airlines flight in emergency landing after pilot dies
Boy falls to death on cruise ship
Unexpected wave rocks cruise ship
Storm Lilian travel chaos as bank holiday flights cancelled