The CAA’s Atol Reform consultation paper recommends a hybrid financial protection model that includes client money and bonds or other financial instruments. It also recommends that Atol Protection Contribution (APC) should range from 50p to £15 depending on the parcel type, rather than the current £2.50 flat fee.
Noel Josephides, Director of Aito and Chairman of Sunvil Holidays: “Full marks for the CAA as it is very detailed and a good basis for discussions. It is a big step up from the initial consultation and looks at everything more realistically.
“I like the idea of a simple client account with variable APC. Aito had a lot of discussions with CAA and they listened.”
However, he said CAA and the industry faced a broader problem: “The main question is how do they fit in with Abta and what it does under the Parcel Travel Regulations – will Abta still ask for a bond? We’ve gotten to this ridiculous situation where we’re governed by two different sets of regulations. There’s a lack of lateral thinking about licensable and non-licensable turnover.”
Airlines are another issue, he said. “CAA allows airlines to spend customers’ money however they want – they take money from carriers months in advance. The airline industry should be involved.
“The best solution for me is the proposed £1 tax in 2005 (on all flights, including scheduled flights).
“The EU will soon charge €7 for access, so why not introduce an airline tax? It will bring in around £1bn in five years. If it were implemented, we wouldn’t have the Thomas Cook and Monarch encounter. If it’s done across ferries, coaches, etc., it will reduce the huge burden on the air travel trust fund.”
Alan Bowen, legal adviser to the Atol Association of Companies, said he was “somewhat disappointed”.
In his personal capacity, he said: “We’re really struck by the idea that people might pay higher levels of APC.
