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Clampdown on split contracts

ANY
company selling a package holiday with a flight will have to hold an ATOL
following the introduction of new regulations from the Government.

The
Department for Transport has laid before Parliament new regulations which, from
October 8, will mean firms selling package holidays on the basis of ‘split
contracts’ won’t be able to do so without an ATOL.

‘Split
contract’ sales are arrangements under which a holiday company sells a flight
(which may be ATOL protected) and accommodation, or other travel products,
under separate contracts which may or may not be protected.

The
Civil Aviation Authority will help companies that need to obtain an ATOL and is
offering a new streamlined process for companies selling less than 500 seats
every year.

The
CAA is also developing, in conjunction with third parties, arrangements under
which ATOLS might be issued to small firms on the basis of protection offered
by those third parties.

Guidance is available on the ATOL website,
www.atol.org.uk or by calling 020 7453 6361.

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