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in-depth atol reform
ttglive.com
Proposals for reforming the Atol system could come from
the government next month. Chris Gray talks to key players
about the merits of the probable proposals
Consumer protection: Experts agree the
system is broken and needs urgent reform.
The so-called flight-plus proposal is
Which way for
regarded as a favoured solution; it would
require Atol protection for any sale of flights
combined with other holiday components,
such as accommodation and car rental
Atol reform?
I
n a few weeks’ time, the industry will learn successfully fought off in the High Court.
how the government plans to reform the He added that the move would have the
Atol system of regulation that has been biggest impact on agents linking low-cost
stretched to breaking point. The system airlines and charter seat sites to accommoda-
is the UK’s attempt to meet the requirements tion-only suppliers.
of the out-of-date European Package Travel The CAA said it expected this plan to generate
Directive – itself due to be reformed over the APC payments from about 1.5 million sales that
next two years. currently do not attract the charge, raising
The government hopes to reform Atol faster almost £4 million, but Bowen predicted it would
than that, and implementation of a new regime be many more. And he added: “It still won’t help
could start as early as next spring. the customer who books everything but the
TTG spoke about the likely proposals with flights through an agent.”
five key players: CAA consumer protection Photi said airlines would be unlikely to chal-
deputy director David Moesli, Association of lenge the move because the current European
Atol Companies legal adviser Alan Bowen, Abta directive meant they already had to provide
chief executive Mark Tanzer, Tui Travel group protection for sales of flights with another
counsel Mike Bowers and White Hart component, as easyJet did through the TTA.
Associates senior partner Chris Photi. If flight-plus was introduced, the airlines
would swap existing arrangements for the new
Flight-plus system, which would be more expensive but not
There is a growing consensus that the most enough to cause strong opposition, he said.
likely proposal is for a “flight-plus” system that
will require Atol protection for all sales of Agents’ Atol
flights plus any other holiday component such Abta’s support for flight-plus is allied to the
as hotels or car hire, regardless of the terms creation of an “agents’ Atol” that would allow
and conditions of booking. agents to offer financial protection but not be
It would extend Atol coverage to airlines classed as the tour operator.
(currently specifically excluded from the Atol That means they would not have to take on
system) selling other components. They extra liabilities for health and safety, or for VAT
would then have to pay the Atol Protection under the Tour Operators’ Margin Scheme.
Contribution, which rises to £2.50 next month. The CAA and the AAC are sceptical because
Online retailers, which have so far been out- they believe the idea will make the system
side of the system because they argue they are more complicated by creating two levels of
not selling packages, would also be brought in. Atol protection.
Bowers said this was a “likely outcome” that But Tanzer said it was gaining ground,
Tui would see as step towards the ultimate goal although a “ton of detail” needed to be worked
of bringing in all scheduled flight sales. out. “People are coming in behind the idea of
Bowen agreed it was the leading option and separating out financial protection from princi-
claimed it was likely to be similar to the CAA’s pal status and then widening the Atol scheme
original note updating regulations that Abta to cover flights and accommodation put
10 18.09.2009
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