ABTA today responded positively to the announcement that the planned increase in ATOL Protection Contribution (APC) will be restricted to £2.50 per passenger. Commenting on the increase ABTA Chief Executive Mark Tanzer said: “Although ABTA Members were disappointed that the APC should rise so soon after its introduction at £1, we accept that market conditions and recent failures have meant that measures are required to stabilise the Air Travel Trust Fund (ATTF). We are glad that the proposed increase is at the lower end of the options considered, as APC places a direct burden on ATOL holders in what is a difficult trading environment. We look forward to the APC returning to the level of £1 as soon as the finances of the ATTF permit”

As part of the APC consultation, ABTA argued strongly for fundamental reform of the ATOL scheme. Mark Tanzer said: “Not only is the existing scheme of financial protection fragile, it has also created great uncertainty and inequalities for the industry and the travelling public. We look forward to working now with the CAA and Government to develop a more effective and fairer system of consumer protection in travel”.