CONSUMER FINANCIAL PROTECTION

CAA Advice to Government on Financial Protection Schemes for Air Travellers

The Civil Aviation Authority (CAA) initially recommended the current ATOL scheme be extended to scheduled airlines. The Government rejected this but asked the CAA to carry out a review to determine whether ATOL bonding could be replaced by other means. The CAA consulted on the replenishment of the Air Travel Trust Fund and proposed reform of ATOL bonding, which resulted in a proposal to introduce an ATOL Protection Contribution (APC) of £1 as a levy on ATOL holders effective March 2008 to top up the Air Travel Trust as a replacement for bonding for the majority of ATOL holders. 

ABTA’s Position

ABTA supported the CAA’s original advice as a means of providing that all travel arrangements were covered by a scheme of financial protection. ABTA gave broad support to the CAA proposal but expressed concerns about areas of detail such as the precise nature and level of the proposed APC which has implications for Members. ABTA has provided information and assistance to the CAA in its consideration of the proposal, particularly on its practical implementation.  ABTA has requested that ATOL holders be able to provide security for non-licensable packages through the CAA in a similar manner to that provided under the ATOL scheme.

Last updated: 8 April 2008