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The Civil Aviation Authority (CAA) has launched a consultation on proposed changes to the Standard Terms of Air Travel Organisers’ Licences, ahead of the introduction of ATOL Protection Contributions (APC) from 1 April 2008.
Following the Government’s decision last month to proceed with the reform of the ATOL Scheme and introduce a £1* ATOL Protection Contribution (APC) to replenish the Air Travel Trust Fund and reform bonding arrangements, the CAA is consulting licence holders on proposed changes to the ATOL Standard Terms. These terms form the conditions of each licence granted and set out the responsibilities of the licence holder.
The changes to the ATOL Standard Terms follow on from the joint Department for Transport/CAA consultation published in April 2007, which set out proposals that would:
- Bring significant benefits to licence holders through the simplification of the current ATOL protection system.
- Introduce better regulation principles of proportionate and risk based regulation.
- Reduce regulatory costs; and
- Ensure consumers continue to receive a high level of protection.
The travel industry supported the proposals and the CAA now needs to amend the current ATOL Standard Terms to give effect to these changes and also introduce new licensing and financial protection arrangements.
The main areas where these changes will take place are:
- The introduction of a new reporting system for the collection of the APC that will replenish the Air Travel Trust Fund and replace bonds and Deeds of Undertaking.
- Changes to the provision of financial information by ATOL holders and monitoring that are proportionate.
- The provision of bonds and overtrading guarantees in certain circumstances.
- The introduction of minimum business systems specifications.
- The appointment of a person by each ATOL holder to oversee licence compliance and administration issues.
- To improve consumer awareness of whether their holiday or travel arrangements are ATOL protected.
Richard Jackson, Director of the CAA’s Consumer Protection Group, which manages ATOL, said: "The consultation on proposed changes to ATOL holders’ licence conditions is an important next step in ATOL Reform following the Government’s go-ahead. The new terms will provide the CAA with sufficient but proportionate regulatory oversight of ATOL holders that will allow us to identify potential failures at an early stage and minimise calls on the Air Travel Trust Fund."
Richard Jackson added: "It is very important for ATOL holders to understand the proposed new conditions and the arrangements for the payment of the APC that will apply from 1 April 2008. I would urge all ATOL holders to use the information we have made available."
ATOL Road Shows
To coincide with the launch of the Consultation, the CAA is holding the first in a series of ATOL Road Shows around the UK to help licence holders understand the proposed new licence conditions and make preparations for paying the APC from 1 April 2008.
The CAA will be holding the road shows at the following locations and dates.
Tuesday 20-Thursday 22 November – London – CAA House, Kingsway
Wednesday 5 December – Glasgow – Crowne Plaza
Thursday 7 December – Newcastle – Royal Station Hotel
Tuesday 11-Thursday 13 December – London – CAA House, Kingsway
Tuesday 18 December – Birmingham – Park Inn, West Bromwich
2008
Wednesday 9 January – Cardiff – Park Inn, Cardiff
Wednesday 23 January – Manchester – Manchester Conference Centre
Friday 25 January – Belfast – Best Western, Wellington Park
Monday 28-Wednesday 30 January – London – CAA House, Kingsway
Andy Cohen, Head of Air Travel Organisers’ Licensing said: "We contacted all ATOL holders two weeks ago about the road shows and received a tremendous response. Over 550 firms have already booked a one-to-one session with us."
Andy Cohen added: "For those unable to attend a road show we have published a guide to ATOL Reform. This can be downloaded from the ATOL website, along with the Consultation document."
* The amount of the APC is subject to approval by the Secretary of State.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
