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CAA publishes responses to proposed new licence conditions

The CAA published a summary of the responses to the consultation on proposed changes to ATOL Standard Terms launched last November. The consultation followed the Government’s decision last October to proceed with the reform of the ATOL Scheme and introduce a £1 ATOL Protection Contribution (APC) to replenish the…

The CAA published a summary of the responses to the consultation on proposed changes to ATOL Standard Terms launched last November. The consultation followed the Government’s decision last October to proceed with the reform of the ATOL Scheme and introduce a £1 ATOL Protection Contribution (APC) to replenish the Air Travel Trust Fund (ATTF) and reform bonding arrangements.

ATOL Standard Terms form the conditions of each licence granted and set out the responsibilities of the licence holder from 1 April.

The main areas covered in the consultation are:

  • The improvement of consumer awareness of whether their holiday or travel arrangements are ATOL protected.
  • The introduction of new reporting arrangements for the collection of the ATOL Protection Contribution (APC).
  • The details of changes to the provision of financial information to the CAA by ATOL holders and monitoring.
  • The introduction of minimum business systems specifications to improve the competence of ATOL holders.
  • The appointment of a Compliance Manager by each ATOL holder to oversee licence compliance and administration issues
  • The provision of bonds and overtrading guarantees in circumstances where there is a need to minimise calls on the ATTF.

Richard Jackson, Director of the CAA’s Consumer Protection Group, which manages ATOL, said: “We have received 35 responses from a cross-section of licence holders, industry associations and consumer organisations, who have made some very useful and constructive points about our proposals. The industry associations were particularly supportive. We are pleased to consider these to see how they can improve our regulatory oversight of ATOL holders.”
ATOL Road Shows

To coincide with the Consultation, the CAA held 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.

Richard Jackson added: “These meetings were highly successful. We received a tremendous response from over 700 firms who were booked into one-to-one sessions with us at seven venues around the country. These firms were pleased to have the opportunity to discuss the new arrangements and we would like to thank all those who attended”.

Next Steps

Once the CAA has fully considered the responses to the consultation it will publish the new Standard Terms on the CAA website in March.

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