5 HOT STORIES NEWS YOU NEED TO KNOW THIS WEEK
This week’s top stories: 1. CAA modifies SBA rules 2. Travel 2 store initiative 3. Ryanair screen-scraping 4. Online discounts slated 5. Royal offers agents cash
1 The CAA’s Andy Cohen
CAA reveals new financial rules for Small Business Atol holders Ian Taylor
The CAA will retain a modified Small Business Atol (SBA) for “genuine small businesses” but toughen the financial criteria on smaller Atol holders and introduce financial checks to rein in a minority that are overtrading. The authority was due to announce its decision on ‘Rebalancing Atol’ on Wednesday, saying it would keep “most but not all” of the proposals unveiled last June. The CAA had planned to abolish the SBA, which licenses firms for up to 500 passengers a year, but it has responded to widespread industry disquiet. There are about 900 SBA holders, chiefly agents. The 500-passenger limit will be
retained, but with a new £1 million cap on turnover. The CAA believes this will push fewer than 5% of SBA holders into requiring full Atols.
All SBA holders will need to meet “a basic solvency test” and new applicants will need £30,000 in share capital – not £50,000 as first proposed – and a minimum first-year bond of £50,000 (£10,000 more than now). SBA holders required to upgrade to a full Atol will
4 •
travelweekly.co.uk — 5 March 2015
also need £30,000 in share capital. New standard Atol holders will have to provide a £50,000 bond in the first year. The changes come into force on October 1. Atol holders with licensable revenue of £1 million to £5 million a year will be subject to new financial tests. Details will be announced in May for introduction from October, although existing holders will not have to comply until their licence renewal. CAA head of Atol Andy Cohen said
the tests would “revolve around asset-to- turnover ratio, cash and profitability”. A CAA study of 100 SBAs suggested
85% would be unaffected by the tests, but 15% would need capital injections ranging from £400 to £245,000. CAA consumer protection group deputy director David Moesli said: “There are SBA companies not far short of minimum solvency requirements and others a long way short. Some may have to do a lot of readjusting.” The authority will also proceed
with a requirement for Atol-reporting accountants to undergo Atol training. It estimates the cost at £600 per business or £1.2 million a year across the sector.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76