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
BUSINESSNEWS
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