BUSINESS NEWS


The liquidation of Thomas Cook in September 2019 stripped the Air Travel Trust which underwrites the Atol scheme of funds. Now the CAA is looking to reform Atol


Abta warns of dangers of rush to Atol reform


Association suggests a rapid transition could trigger failures. Ian Taylor reports


Abta has urged a two-year delay to any Atol reform and a five-to-10-year transition to new arrangements after consulting its members. The association has warned a


rush to make substantial changes “could seriously damage the recovery prospects of the industry and prove counterproductive” by triggering failures. In a response to the CAA’s Atol


Reform consultation which ended last month, Abta reports “concern about the ability of travel companies . . . extremely hard hit by the pandemic to


56 2 SEPTEMBER 2021


adjust to any proposed changes”. It notes “the current negative


sentiment” of financial services toward the sector” and warns it “would be difficult if not impossible to manage the simultaneous introduction of changes to financial criteria alongside . . . new primary security solutions (trusts, bonding, insurance) and rebuild the [Air Travel Trust] Fund”. Abta repeats widespread industry


calls for reform of Atol to occur only alongside action on airline insolvency and a review of the Package Travel regulations (PTRs), and insists


there should be a choice of financial protection methods rather than mandatory trust arrangements. It points out a “pro-choice model


reflects the arrangements in place under the PTRs where a range of bonding, insurance and trust account solutions are permitted. Members feel strongly that these options could be extended.” The association urges the CAA


to permit “greater flexibility [by] allowing different financial protection


Continued on page 54 travelweekly.co.uk


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