THE Civil Aviation
Authority’s bonding requirements have been called into question following the
collapse of an independent US operator.
Kent-based
Vacation USA has ceased trading after failing to renew its ATOL, but its
director John Foster has blamed inflexible CAA rules for the company’s demise.
He claimed he
could have saved the company if the CAA had not insisted it refund all clients booked
when its licence ran out on March 27, and then rebook them a few days later
when a new ATOL had been issued.
“There has got to
be a better way of bonding,” he said.
The failure of
Vacation USA comes less than three months after the failure of Bluebird
Holidays, which also specialised in US breaks.
Angry Foster said
Vacation USA’s bond rose to £152,000 following September 11 and the situation
was made harder when insurance companies were reluctant to cover US
specialists.
Foster, who could
lose his house following the collapse of the company, believes the current
system will force more independent operators out of the market as they will be
unable to afford the bonds or meet the CAA’s demands. “It’s a real shame. We
are one small company and the Big Four will soon be the only ones left, which
is not practical for the consumer,” said Foster, a former ILG sales manager.
He added that his
company had sold 70% of capacity for summer 2002 so would have been profitable
long term.
A CAA spokeswoman
said it could not discuss individual companies. “Vacation USA has not renewed
its ATOL. The requirements that are necessary to renew an ATOL are agreed with
the company,” she said.