08 Jul

CAA extends deadline for new financial tests for ATOL holders

The CAA has extended its deadline for the introduction of new financial tests for ATOL holders, which were due to come into effect from October this year.

There are two separate tests to be introduced: one for new ATOL holders and one for existing licence holders.

The new tests will be applied to new applicants for ATOLs, from 1 April 2016, and then to existing licence holders from September 2016. Full details of the new tests will be announced before the end of September 2015, giving existing ATOL holders 12 months’ notice of the changes. An updated Financial Policy note will also be published, outlining the new tests applicable to Small Business Atols and standard Atol holders licensed for less than £5million.

ABTA welcomes the CAA’s decision. We called for implementation to be delayed and to be integrated with the wider DfT ATOL reform process and in that context an extension to ensure that businesses have enough time to fully prepare for the changes is welcome. We look forward to the CAA consulting on the proposed new tests before they are published as final.