Firms use Atol logo without renewal Ian Taylor
Some tour organisers awaiting the delayed renewal of Atol licences are continuing to display the Atol logo and to claim products are “fully protected” in breach of CAA regulations. The CAA identified nine travel
businesses at the start of April that “applied to renew licences, but failed to do so” by the March 31 renewal date. It noted: “In some cases the CAA has yet to reach a decision on their application; in others, the CAA has decided to grant the application from the date on which the business provides certain items to the CAA.” In the meantime, the CAA
made clear: “Until the firms have
renewed their licence, they are not permitted to advertise or accept bookings or payments unless they are acting as an agent on behalf, and with the authority, of a disclosed Atol holder or are acting as an airline ticket agent.” Following a complaint by a
consumer, Travel Weekly has found four businesses on the list are advertising packages and displaying the Atol logo on their websites. The CAA confirmed the four
currently do not hold Atols. Two of the four are Abta members. Only one of the nine late-renewing businesses has since received its licence. CAA head of Atol Michael
Budge said: “We can’t comment on individual companies, but we’re
Iata objects to CAA proposals to segregate money
Ian Taylor
Airline association Iata is opposed to the mandatory segregation of customer money by Atol holders and has made clear its opposition in its response to CAA proposals for Atol reform. Simon McNamara, Iata UK and
Ireland country manager, explained the association’s view at an Abta Aviation Forum in London on Tuesday, saying: “We’re against the principle of segregation, particularly when air tickets have been issued and particularly when these have been issued through the Iata BSP [billing
4 27 APRIL 2023
and settlement plan]. It is a payment to the airline, and airlines are not banks. It’s only right the payment goes to the airline.” The CAA has acknowledged
segregation of client money is its “preferred option” for reform of the Atol scheme, but insists “no decisions have been taken” and it is considering “a range of different approaches to segregation” set out in a ‘Request for further information’ issued in January. The CAA is considering the
responses ahead of a follow-up consultation on detailed proposals, expected in the autumn. McNamara told the Abta forum:
Until the firms have
renewed their licence, they are not permitted to advertise or accept bookings or payments
liaising with firms that didn’t renew in March. This means waiting for additional information or other requirements from the company before we finalise their licence. “There is an agreed process
in place for companies that do not renew their Atols. We’ve communicated with all applicable companies to remind them of the rules.”
The consumer who contacted
Travel Weekly, who asked not to be named, said of one company: “We discussed a package group holiday to Vietnam. I asked about financial protection and was told they are an Abta member and have an Atol to cover this package. I checked on the CAA website and was surprised to see their licence was not renewed. I clarified this with the rep, who assured me they are protected.” An industry source told
Travel Weekly: “Displaying an Atol when you don’t hold a licence is not allowed. [But] the CAA compliance team would not get involved if companies are talking to its licensing team. Hopefully, they will get their Atols.”
Simon McNamara
“If the CAA imposed segregation it would have a huge impact. It would change the whole financial set-up of the industry.” He added: “Our BSP system protects money before it’s passed from agents to airlines.” Rachel Jordan, Abta director of
financial protection and membership, noted the CAA has proposed “significant change” to the Atol regime and said: “There does seem a preference for segregation. Some members already do that and are happy with it. But a lot don’t. If segregation was mandatory it could be difficult.”
She insisted: “Flexibility remains key.” Jordan also called into question the
CAA’s proposed start date of April 2024 for reform, arguing: “The timescale is challenging. It’s difficult to see how it can happen given the CAA has to work with the Department for Transport and it’s likely we won’t see the follow-up consultation before the autumn.” Abta director of industry affairs
Luke Petherbridge argued: “There have been hints of a two-step process – there could be immediate changes introduced from April 2024 and longer-term changes.”
travelweekly.co.uk
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