p10-11 news Dec18 16/12/09 19:10 Page 10
news atol reform
ttglive.com
Long-awaited proposals to reform the Atol protection
system were published by the DfT last week. But would
they offer clarity or confusion? Chris Gray reports
Question remains:
what is a package?
GOVERNMENT proposals to reform a proposal governing flight-only
the Atol protection system to make it sales by existing Atol holders,
clearer for consumers might create which suggested taking them
more confusion over what makes out of the system so they
up a package, experts claimed. did not need a licence.
The Department for Transport That would mean
believes its five-point plan would operators such as Gold
bring clarity by “drawing a line” be- Medal, Avro and Travel2
tween types of sales. But others have said some would no longer need to have a licence
of the suggestions would create more confusion. for flight-only sales.
The plan would extend coverage to all sales Another proposal was for all flight-
of a flight plus another holiday component, only sales to be made subject to Atol,
including sales by airlines. It would extend Atol to apart from sales by appointed
non-air packages, introduce an Atol certificate to agents of airlines, as long as carriers
be given to all customers buying protected holi- guaranteed they would honour
days, and suggests three options for flight-only tickets if an agent failed. Bowen
sales by third-party agents (see box for details). claimed most airlines would not be
Alan Bowen (pictured), legal adviser to the prepared to give that guarantee.
Association of Atol Companies, said one of the A source close to the DfT denied
proposals that might cause more confusion was the proposals added confusion and
the suggestion that the sale of a flight and said the consultation had deliberately
another component would constitute a package left open what would be considered a
only if it were made within a certain time limit. package if a customer booked a flight
“It is unclear how far apart a sale will have to and then added another component later.
be to constitute a package,” he said. “Will it be “We are genuinely seeking feedback from
24 hours, seven days, a month or 12 months?” the trade on this. It’s an important question and
Bowen said a surprise in the consultation was the trade must put its thinking cap on,” he said.
The DfT’s FIVE PROPOSALS for reforming Atol
THE DEPARTMENT for Transport made the system as it is but improve documentation.
following five main recommendations for 2
Flights-plus for airline sales: Extend
Atol protection to all sales in the UK of a
reforming the Atol system, which it said flight plus another holiday component for 4
Atol certificate: Introduce an “Atol
certificate” that would have to be given
would bring more clarity to the system: all airlines. The Atol scheme would also be to customers and would list the elements of
applied to “click-throughs” from an airline’s their holiday covered.
1
Flights-plus: Make all sales of a flight and website to another company. This would also
another “significant” holiday component, apply to click-throughs from an agent’s or 5
Non-air packages: Allow companies that
sell packages using rail, coach or sea
such as accommodation or car hire, subject to any other travel company’s site. travel to also protect the non-air packages
an Atol, as long as the second component is through the Atol system.
bought within a time limit, as yet unspecified. 3
Seat-only sales: Three different options
for reforming regulation of flight-only sales
However, selling a service such as airport car by parties other than an airline: A) Exclude Consultation on the proposals will continue
parking with a flight would not require an Atol. all flight-only sales from the Atol scheme; until March 11 next year. Legislation to
The DfT estimates this proposal would extend B) Include all flight-only sales other than those change the regulations will then go before
Atol protection to five million holidays a year. made by official agents of airlines; C) Leave the Parliament.
10 18.12.2009
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