p10-11 CIMTIG July3 1/7/09 21:13 Page 10
news conference report
ttglive.com
Cimtig debate
June 26 ■ London
Abta and the industry’s progress on reforming financial protection came under
fire at a Cimtig debate on licensing and regulations. Lee Hayhurst reports
Protection chaos sullies
offer protection following the Freedom Direct
collapse when it said it could do nothing if the
booking was not being honoured.
After quoting from a letter sent to a customer,
industry’s reputation
which stated that if the company was not
honouring the booking a claim could not be
considered, he said: “So, if the tour operator
has decided to honour the booking, you have
financial protection, if not, you’re on your own.
THE INDUSTRY has been accused of “fiddling system sliding into bankruptcy and fewer holiday “I think someone at Abta needs to read these
while Rome burns” in its sluggish attempts to sales available to replenish it. letters before they go out.”
reform consumer financial protection. Consumers caught in the XL Leisure Group and Bowen also called on Abta and the CAA to start
Alan Bowen, former head of legal at Abta, Freedom Direct collapses were realising they proper negotiations, claiming at the moment
made the charge at a Cimtig seminar where he were not protected by Abta and Atol when they they talked only via solicitors’ letters. Abta
claimed customers were deciding Abta and Atol thought they were, he warned. He showed the chairman John McEwan denied this.
protection were worthless. audience a series of comments on consumer David Moesli, deputy director of the CAA
The CAA warned Abta’s suggestion of websites that were scathing about Abta and consumer protection group, said the Department
providing cover through an “agents’ Atol” was Atol’s role in those collapses. for Transport was determined to find a clear
likely to fall foul of the government’s desire for Bowen dismissed expectations that the solution in a consultation set to start in October.
consumer clarity in the system. situation could be resolved by new legislation, a The department wants to extend protection to
Bowen, now adviser to the Association of Atol government bail-out, or airlines and dynamic any sale “that looks like a holiday”, possibly
Companies, said the situation was critical, with packagers being brought under Atol. including airlines that sell flights plus another
the Air Travel Trust Fund that backs the Atol And he was scathing of Abta’s attempts to holiday component.
The government’s plan could see all non-air
packages brought under the current Atol regime.
It may also look at bringing in no-frills airlines
that sell components on a “click-through” basis.
Moesli suggested Abta’s proposal for an
agents’ Atol might not find favour if it were
considered too confusing for customers.
McEwan’s plan envisages an agents’ Atol that
gives financial protection to the consumer
but does not make the agent a principal and
therefore liable for health and safety risks.
“The question is whether the consumer will be
happy having two classes of Atol, one where they
are completely protected under Atol and one
where they are not,” said Moesli.
“From the government’s point of view it
is going to be
“The issue of very much about
consumer clarity
the issue of
consumer clarity
will be above and that will
all others for
probably be
From left: David Moesli, CAA; Alan Bowen, AGB Associates; Mike Monk, Abta; Gary Lewis, TTA; and moderator Ian Skuse, above any other
head of travel, tourism and aviation at solicitors Piper Smith Watton the government” considerations.”
10 03.07.2009
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