ABTA is threatening to go to the High Court to challenge
new Civil Aviation Authority guidelines on ATOL requirements which
the association claims will affect every agent in the
country.
The CAA published its guidelines today on what constitutes a
package to clamp down on split- contracting and unprotected
dynamically packaged sales.
However, the guidelines state agents must hold an ATOL for the
sale of all flights and accommodation requested if the products
sold are not a package from a single ATOL holder – with few
exceptions.
Chief executive Ian Reynolds said: “We have tried to persuade
the CAA this is incorrect but it disagreed so the only way forward
is to let the courts decide.”
ABTA said the guidance goes beyond the law. In its view, the
legal definition of a package is two or more elements that are
prearranged and at an inclusive price. Newman Street intends to
announce within days its plans to go to the High Court for a
judicial review.
Reynolds said agents – particularly from the business
travel sector – are selling flights and accommodation and
issuing separate receipts which make it absolutely clear to the
consumer which company the contract is with. “That’s the way
travel agents all over the country are operating,” he said.
“The unintended and unwelcome consequences of this guidance is
that the agent will take on tour operator liability and possibly
accountability to the Tour Operator Margin Scheme – and we
don’t think it is right,” he said.
Federation of Tour Operators director-general Andy Cooper said
the FTO is uncomfortable with the guidance. “The role of the
regulator is to issue guidance on what the law is, as opposed to
what it would like it to be.”
CAA consumer protection group deputy director David Moesli said
it had taken legal advice in drawing up the guidelines. “We
don’t intend to change our guidance. We’re confident it
is correct.”