Commenting on the judgement on the court case of the CAA verses Travel Republic Ltd Mark Tanzer, ABTA Chief Executive said: “The failure of the CAA's case against Travel Republic marks a low point in the administration of the travel industry's system of financial protection.
“The uncertainty that surrounds this area has led to the initiation of expensive and ultimately futile proceedings against a prominent ABTA member.
“The case for reform of the ATOL scheme and the Package Travel Regulations is now irrefutable. ABTA initiated discussions with the Department for Transport at the beginning of this year with a view to bringing all holiday arrangements within a single scheme of financial protection, and I am pleased that this idea has been taken up within the DfT's forthcoming consultation. The opportunity to remove the uncertainty for ABTA Members and their customers must not be missed.”
ABTA’s proposals to change the ATOL scheme aim to extend it.
• The scheme should include all sales of flights plus other services whether or not they are package holidays.
• The scheme should include the sales from all travel companies, including retail agents and principals as well as airlines, although it is feasible airlines could only be included following a review of the Civil Aviation Act.
• Any company selling a flight plus other services will be a licence holder unless acting as the agent of another company selling the flight and other services under its own licence
• Security should be provided by the licence holder through a mix of levy, bonding and other acceptable means at a level acceptable to the participants.