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Eventia response to proposed ‘ATOL’ changes

Eventia has responded robustly to the Civil Aviation Authority’s consultation document issued on 27 April outlining proposals to increase Protection Contributions for the Air Travel Organisers’ Licensing Scheme (ATOL). Under the proposals, the ATOL Protection Contributions (APC), paid by each Licence holder, would rise from £1 to £3 per passenger from October 2009.

Currently, each Licence holder must contribute £1 for every passenger booked under its ATOL into a protection fund called the Air Travel Trust Fund (ATTF or The Fund). The objective of the ATTF is to use Trust monies to repatriate and meet claims for losses incurred by customers of a failed Licence holder. The Fund’s liquidity is enhanced through an insurance policy designed specifically for this purpose and a credit facility, which is partly backed by a Government Guarantee for a transitional period. Further details of the Trust Fund and a copy of the CAA’s consultation paper are available on the CAA’s web site: www.caa.co.uk

Commenting on the proposed changes on behalf of Eventia, Brian Kirsch, Chairman of Eventia’s Regulation Committee, said:

“We believe that the CAA’s proposals could do serious damage to the travel industry. They also represent a major departure from the concept accepted by the industry little more than a year ago.”

A copy of Eventia’s full response to the CAA is available here.