Sunweb is granted Atol by the CAA Ian Taylor
The CAA has granted tour operator Sunweb an Atol after Travel Weekly reported the EU-based company was offering flight-based package holidays for sale through its UK online retail arm Sunweb UK without a licence. Offering flight-inclusive
packages for sale without an Atol is a breach of the Package Travel Regulations (PTRs), which specify a travel organiser “is required to hold a licence” under the Atol Regulations. This was confirmed by the Department of Business (BEIS) in guidance last July: “Traders not established in the UK selling or
offering for sale packages in the UK…must comply with the UK insolvency regime.” Netherlands-based Sunweb said
last month that “all flight packages are currently covered by the SGR scheme [in the Netherlands]” but added: “We expect to be granted an Atol in the very near future.” (Travel Weekly, January 12) However, Travel Weekly revealed
the CAA had been notified three years ago that Sunweb was selling flight-inclusive packages without an Atol (Travel Weekly, January 19). In fact, the company has required
an Atol since the end of the Brexit transition period on December 31, 2020. Prior to that, EU-based
However, the length of the
operators could sell flight-based packages in the UK without a licence. Sunweb Group spokesperson
Martine Langerak said: “We’re pleased the Sunweb Group has been granted an Atol. Most importantly, we’re pleased we can continue to offer our customers unique holidays across Europe, safe in the knowledge they are fully protected.”
Industry asks: How much is in the Air Travel Trust fund?
Ian Taylor
Senior industry figures have expressed concern that the CAA’s Atol reform proposals make no reference to the state of the Air Travel Trust (ATT) fund which underpins consumer financial protection. The fund was cleaned out
by Thomas Cook’s failure in September 2019 which cost the trust £444 million and required a back-up insurance policy payout. The CAA Request for Further
Information on Atol reform, published in January, reveals nothing about the financial state of the fund but notes the CAA is acting “as requested by the government via the trustees of the Air Travel Trust” and is considering “a number of scenarios based on
6 9 FEBRUARY 2023 There is nothing in
the CAA document to say how much they think they need. It would be helpful to be given a clue
different capital requirements . . . on the basis that the Air Travel Trust no longer requires government support”. Alan Bowen, advisor to the
Association of Atol Companies, said: “We’ve no idea how much is in the Air Travel Trust. There is nothing in the document to say how much they think they need. It would be helpful if the CAA would give a clue. It must be getting updates [on the fund] weekly.” The most-recent statement on the fund revealed it held £45 million on
September 28, 2021, with a back-up facility of £75 million available to May 2024 and an expectation the government “will provide additional financial support as necessary”. ATT financial statements for the
12-month periods to March 2021 and March 2022 remain outstanding. Trailfinders founder and
chairman Sir Mike Gooley revealed he made a Freedom of Information request to see the accounts in January. He accused the trustees of being “delinquent” in not publishing them. Travel Weekly was awaiting a CAA
response prior to going to press. But CAA head of Atol Michael Budge has made the case for reform in this issue, arguing it aims “to increase the financial resilience not only of the scheme but also the wider industry”. Budge confirms “a form of
Michael Budge
segregation of funds is our emerging preferred option”, but notes “businesses have different structures and ways of operating” and there are “several potential options on how segregation . . . could be implemented”. He insists the CAA wants “to
dispel the view that the reform is only about mandatory trust
account arrangements”. i Atol reform: Business, page 55
travelweekly.co.uk
application appears excessive. The CAA notes in its licensing terms: “The CAA…will generally deem an application withdrawn if an applicant has not actively pursued the application (eg by not providing information requested by the CAA) within a reasonable period of time.” The regulator declined to
comment on the terms of the licence, but as a new Atol holder Sunweb, which is licensed for 11,769 Atol- protected sales to the public, would be required to provide a bond equivalent to 15% of licensable revenue. The company is already bonded
with Abta, of which it is a member, for non-flight packages.
PICTURE: Tim Anderson
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