EU operator in breach of Atol rules Ian Taylor
A major EU-based operator is offering flight-inclusive ski packages for sale in the UK without holding an Atol, in breach of UK regulations. Sunweb, based in the
Netherlands, has a UK-registered retail arm that is a member of Abta through which it offers financial protection for non-flight packages. However, it offers flight-inclusive packages through its
Sunweb.co.uk site protected through Dutch insurer SGR rather than the Atol scheme. The Sunweb UK site offers “a
range of flight packages” for sale, telling consumers: “Your flight- inclusive holiday is financially protected by SGR.” Prior to Brexit, EU-based
operators could sell in the UK without an Atol owing to mutual recognition of EU protection regimes. That changed from the end of the post-Brexit transition on December 31, 2020, when the Package Travel Regulations were amended. Since January 2021, EU-based companies selling flight-inclusive packages in the UK have required an Atol. Travel Weekly understands the
issue was brought to the CAA’s attention more than a year ago. The CAA declined to comment on that, but a spokesperson said: “Sunweb is actively engaging with us about becoming an Atol-licensed operator. We expect its Atol application to be confirmed in the coming weeks.” A Sunweb UK spokesperson confirmed: “All flight packages
ATT faces £6m hit from Dream World Travel liquidation
Ian Taylor
Liquidators have confirmed operator and agency Dream World Travel owed more than £10.2 million and held just £25,000 in assets when it ceased trading last July. The cost of the collapse to the
Air Travel Trust Fund (ATT) is put at more than £6.1 million. The company, based in west London, was not an Abta member, but held an Iata licence and had traded since 2006 selling mainly long-haul travel. It held an Atol for 4,450 travellers.
4 12 JANUARY 2023 Its affairs have proved difficult to
unravel. The CAA opened a claims portal for customers in August after delaying the process “because of anomalies”. Liquidators Opus Restructuring only issued a ‘statement of affairs’ in late December. This reveals the company owes more than £1.3 million to trade creditors, including almost £850,000 to three companies – Kayak, Brightsun Travel and The Holiday Team. It owes Iata more than £52,000 and Barclays £200,000. In addition, it had run up
significant debts with online payment companies, including Ecommpay
The Dutch scheme
may cover turnover in the UK, but it has to be protected under the UK scheme
are currently covered by the SGR scheme. However, Sunweb is well-progressed in the application for an Atol. We’ve received licence terms from the CAA. We expect to be granted an Atol in the very near future.” An industry source said: “The
CAA wouldn’t take enforcement action if a company is actively engaged with it.” However, UK operators are entitled to ask questions of the regulator.
The source noted: “The application has taken far longer than usual.” Abta, which raised the issue with the
CAA last year, declined to comment. A second industry source said:
“This looks a bit odd. The Dutch [financial protection] scheme may cover Sunweb’s turnover in the UK, but it has to be protected under the UK scheme.” As a new Atol holder, Sunweb
would be expected to provide a bond or use trust arrangements for customer money in addition to paying the £2.50 Atol Protection Contribution on bookings. Sunweb carries about one
million customers a year across Europe. It announced the acquisition of Danish agency Atlantis Rejser on Tuesday, its second acquisition in as many months.
Long-haul specialist Dream World Travel ceased trading last July
(£2 million), Paysafe (£400,000) and Checkout (£380,000). A considerable number of Dream
World Travel customers appear to have been left without air tickets or Atol Certificates for flights they paid for in full. Customer creditors are owed sums ranging up to £5,586. The cost to the ATT is put at £6,092,733. The CAA declined to comment and Opus has so far failed to answer Travel Weekly’s queries. But an industry source with knowledge of the failure described the company’s record-keeping as “abysmal”. It is understood the CAA has accepted
about 2,100 customer claims to date and more are expected. Dream World Travel’s most-recent
accounts for the 12 months to June 2021 showed it had £2.3 million in assets against £1.9 million owed to creditors and reported a loss for the pandemic-hit year of just £20,000. The ATT held less than
£20.6 million in March 2020 and gave notice in September 2021, when it last issued accounts, that subsequent failures would cost it £14 million. The fund would have been swelled by the Atol Protection Contributions on bookings through last year.
travelweekly.co.uk
PICTURE: Shutterstock/ChaiWatPhotos
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