p10-11 Sept 18 16/9/09 19:26 Page 11
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in-depth
together through dynamic packaging,” he said.
Moesli questioned whether it would give
consumers the clarity the government wanted,
saying: “It’s difficult to have two classes of sale.
Do people recognise the differences between
them? Will the consumer understand?”
Bowers said Tui did not favour any two-tier
system of protection within Atol but wanted 3f
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uniform regulations applying to everyone
selling linked arrangements.
Photi claimed an agent’s Atol was not on the
CAA’s agenda even though Abta was promoting
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it as a potential benefit to its members.
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Flight-only
The government has ruled out the idea of
bringing airlines’ flight-only sales into the
consultation, even though Tui still sees that
as its ultimate goal.
However, there are likely to be discussions
about whether flight-only sales sold by a third
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party should be included, as they are now, or
specifically excluded. If they were excluded it
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would create a more level playing field between
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operators selling flight-only and the airlines.
Such a move would financially benefit
operators such as Tui by removing the costs of
Atol protection from flight-only business.
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Bowers said Tui would get “some benefit”
from this but he was not strongly pushing the
case. “There is an attraction in removing flight-





only so customers have a clear distinction,” he
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said. “But there is some risk associated with
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that in terms of taking out of the regulation
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system some parties currently in it.”
Photi said it made “eminent sense” to have
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a clear system that included flight-plus but
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excluded flight-only. The scheme would be a
big benefit to flight-only operators such as 
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Teleticket or Kiss Flights, he added. !5`]c^^]W\ba $5`]c^^]W\ba =bVS`]^bW]\a(
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Extending the scope of Atol will bring more
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companies into the system and they will be re-
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quired to provide bonds as new licence holders.
The financial crisis and perceived vulnerability
of travel companies has made bonds harder to
obtain and more expensive.
Photi said the level of bonding demanded of
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new Atol holders by the CAA was so high it
could be seen as a barrier to entry.
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But Bowen warned reducing requirements
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could create a “backlash” from existing Atol
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holders who would see those given the lower
rate as “having a free ride”. Bowers said some
form of transition set-up might be needed, but
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added the consultation period meant there would
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be plenty of time for companies to prepare.
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