The Civil Aviation Authority has published details of proposed standard terms for the new Flight Plus licence and ATOL Certificate, along with revised policies on payments by the Air Travel Trust. The Information Paper provides details of the planned Atol Certificate to be launched along with Flight Plus from next April.

The CAA paper also gives detail of proposals for Approved Bodies which would provide Atol cover for agents without the latter having to hold their own licence.

ATOL Reform - Background
In recent years, evolving trade practices in the travel industry have resulted in many more consumers booking holidays that appear to them to be packages, but are sold with either limited, or no financial protection.

Widespread customer confusion over protection arrangements has been apparent following recent travel company failures – making clear the need for reform to bring clarity and ensure that when customers book what appears to be a package holiday, they are protected.

Consequently, the Government has said it plans to update the ATOL Regulations so that consumers can have greater clarity about when their holidays are ATOL protected. This will help ensure that ATOL protects those holidays it was always supposed to.

Details are subject to consultation, but in the future, to make sure people are protected when they expect to be, the outline proposal is that anyone booking a flight which is sold together with accommodation (and/or car hire) at the same time or within a day of each other will be covered by ATOL.

Further, any firm selling this type of ‘Flight Plus’ holiday would be required to obtain an ATOL. They will also be required to pay the £2.50 ATOL  Protection Contribution (APC) for the booking to guarantee their customers protection against their failure.

The CAA, consumer groups and the majority of the travel industry agree these changes are overdue and necessary to ensure clarity of the protection arrangements for holidaymakers.

Air Travel Organiser Licences (ATOL) are issued by the Civil Aviation Authority to travel organisers and tour operators who sell air travel packages in the UK.  It is the only licensing scheme for tour operators that sell air holidays and flights and in holding a licence, operators also meet European Package Travel Directive insolvency protection requirements.