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TTA gains ATOL agreement
The Civil Aviation Authority has agreed to extend its ATOL protection scheme to the Travel Trust Association.
The 400 members of the TTA protect passengers’ money against company failure through a combination of a trust fund and insurance rather than bonding.
Following dicussions with the authority, the TTA’s financial protection arrangements have been accepted by the CAA instead of bonds to obtain ATOLs.
The CAA tightened the ATOL regime last October to cover retailers selling flight inclusive packages on a split contract basis. The action was taken following a number of costly company collapses.
The CAA said before the change in the law that it would be prepared to adopt existing arrangements as a basis for granting ATOLs where these could porvide the comprehensive protection required.
Final arrangements with TTA members to obtain ATOL protection is expected to take a few weeks.
CAA ATOL manager Simon Froome said: “We are pleased to have reached a satisfactory conclusion to our discussions with TTA which will allow their 400 or so members to obtain ATOLs and comply with the new regulations.
“We expect most of the TTA applicants to fall into the Small Business ATOL ctaegory.
“We emphasised when the regulations changed that we wanted to work with trade bodies and others to build on existing consumer protection arrangements. This is the first scheme that has been adopted.”
Report by Phil Davies
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