Tag Archives: CAA

Trade concerns over latest Atol overhaul

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Trade concerns over latest Atol overhaul

By Ian Taylor |

Trade concerns over latest Atol overhaul

The government has begun moves to overhaul Atol funding, triggering fears that an end to state backing so soon after Flight-Plus reform will damage the sector.

The Department for Transport (DfT) denied any change of policy. But with the Air Travel Trust fund, which provides financial protection to holidaymakers, poised to go into credit for the first time since the 1990s, it is believed ministers want to end 
the government’s liability for a future major failure.

Moves to revise the scheme are already under way. The Civil Aviation Authority (CAA) met senior industry figures to discuss changes before Christmas and the DfT is poised to issue a ‘call for evidence’ within weeks.

This would lead to a consultation later this year, with the DfT hoping to have a new funding scheme in place by 2014.

That has led to fears all Atol holders will have to bear the cost of trust arrangements or insurance premiums on protected holidays.

The extension of Atol to Fight-Plus sales has seen more companies operating trust accounts, which hold customers’ money until they take their holidays. The problem is the impact on cashflow.

A CAA spokesman said: “We’ve always said we would review funding arrangements when the fund returns to surplus.” A DfT spokeswoman insisted: “There is no greater urgency or added pressure from us.”

However, the DfT confirmed changes could be in place by 2014.

Atol specialists expressed alarm at the prospect. Association of Atol Companies legal advisor Alan Bowen said: “We’re aware of rumours the government is looking at alternatives to the existing protection scheme. The industry would be happy if things just sat still for a while. Trust accounts are not a panacea. There have to be options for people.”

CAA confirms April ‘too soon’ for Atol reform

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CAA confirms April ‘too soon’ for Atol reform

Jan 31, 2012 12:00PM GMT

The government’s planned Atol reform will not be implemented in full from April, the Civil Aviation Authority has admitted.

CAA consumer protection group director Richard Jackson said the reforms would come in in April, but businesses will not be expected to fully comply until October.

He told the parliamentary transport select committee today: “It will be difficult for the industry to be ready by April because it can’t move finally until the Department for Transport announces its decision.

“I will be surprised if all the changes will come in in April. There will be a sensible implementation phase. We will wait until probably October 1 for all the changes required to be made to systems.”

Agents will not need individual Atols – CAA

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Agents will not need individual Atols – CAA

Nov 17, 2011 08:00AM GMT

The Civil Aviation Authority says it is confident agents will not be left to apply for individual Atol licences in order to comply with the Flight-Plus regulations due to be introduced next April.

A CAA spokesman confirmed the authority is in discussions with several organisations interested in becoming approved bodies.

These would hold a Flight Plus Atol on behalf of member agencies, removing the need for businesses to go to the trouble and expense of acquiring their own licence.

The CAA publication of an Atol Reform Information Paper and draft Standard Terms this week appeared to rule out travel association Abta becoming an approved body because it is not prepared to take on the risk of members ceasing trading.

Advantage also appeared to rule out taking approved-body status in favour of offering its members franchise arrangements – although the effect of this would be the same.

The CAA spokesman said: “We are currently in discussions with several organisations which are looking at the options of becoming approved bodies and we are confident the option will be there for agents to take as an alternative to approaching us for a licence on their own.

“The idea of an approved body is to allow agents to undertake licensable business without the need, and the associated costs, of acquiring an Atol of their own in every circumstance. This has benefits for agents.”

Advantage appears to have baulked at the proposed £20,000 initial charge for being licensed as an approved body.

The spokesman said: “The cost for becoming an approved body reflects the level of due diligence the CAA has to do for firms wishing to become one.”