BUSINESS NEWS
The CAA’s Paul Smith says: ‘Variable levels of APC are potentially one way of pricing risk differently’
CAA’s plan for risk-based Atols may vary APC rates
The CAA intends to introduce “risk pricing” to Atol licensing which could mean variable levels of Atol Protection Contribution (APC) for Atol-holders. An industry consultation will
Abta warns proposal would mean ‘extra costs’ for Atol-holders. Ian Taylor reports Atol-holders are
FUTURE SPRING FORUM
In partnership with
currently charged a flat rate of £2.50 APC per passenger. CAA group director of consumers and markets
outline the CAA’s “direction of travel” for addressing “the level of risk” attached to operating without trust arrangements. Abta warned the proposed changes would “lead to additional costs” for many businesses.
40 18 MARCH 2021
Paul Smith confirmed the move in a Travel Weekly Future of Travel webcast, saying: “There is a lot of discussion about the merits of trust funds, and there are plenty of merits. “There may also be good reasons
for other business models. But if those business models are imposing a certain level of risk, is that adequately
accounted for? Is there sufficient recognition of the risks that different business models impose?” He explained: “The consultation is
going to set out how we want to look at these issues and how we think about better pricing of the risk imposed.” Smith insisted: “This is not to
force people into a particular business model.” But he said variable rates of APC
Continued on page 38
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PICTURE: Tim Anderson
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