CONSUMER PROTECTION

This subject has recently been under consultation.

Consultation undertaken by: Department for Transport
Consultation period: 10 December 2009-11 March 2010

Subject of consultation: the Civil Aviation Authority (CAA) role in safety, consumers and the environment. It includes reforming the scope of the ATOL scheme.

ABTA has consulted its Members on this subject and submitted its response.

Background

The protection of pre-payments made by travel consumers and the mechanisms for repatriation of consumers following travel company failure are contained within the Package Travel Regulations, the ATOL Regulations and a number of voluntary industry schemes.

The Civil Aviation Authority (CAA) has previously recommended that the ATOL scheme be extended to scheduled airlines, which the Government has rejected. The last CAA review resulted in the ATOL Protection Contribution (APC) being increased to £2.50 effective 1 October 2009. This passenger levy on ATOL holders is designed to top up the Air Travel Trust Fund and is a replacement for bonding for the majority of ATOL holders.

On 10 December 2010 the DfT launched its consultation on proposals to update the regulatory framework for aviation. This follows the March 2009 consultation on economic regulation of airports and focuses on the CAA’s role in safety, consumers and the environment. It also includes reforming the scope of the ATOL scheme.

ABTA's Position

ABTA has always seen the APC as a first step towards comprehensive protection and not as an end in itself. In view of the current economic situation, the changing face of travel sales and the desire for a level playing field, we believe strongly that the concept of financial protection for all air travellers remains appropriate.

The consultation addresses fundamental issues about the role and policy direction of the CAA. Further work is required to ensure that the scheme operates effectively and without unnecessary cost or regulatory burden on Members. Decisions also need to be made about the inclusion or otherwise of flight-only sales.

ABTA will use the Member views obtained from the Package Travel Directive questionnaire to inform this consultation and consult further on the ATOL proposals and the other issues if necessary.

last updated: 15 January 2010