ABTA has won its judicial review brought against Civil Aviation Authority guidance that required all travel agents putting together their own package holidays to hold an ATOL.
In the High Court in London on Monday morning, Mr Justice Goldring issued his judgement backing ABTA. The association had warned that if it had lost, it would have cost the trade an additional £250 million a year for ATOL bonding.
After the judgement, ABTA head of legal affairs Simon Bunce said: “We are very pleased, this is good news for travel agents.”
ABTA’s legal team believe the decision is a clear victory for the association.
Mr Justice Goldring did not allow the CAA permission to appeal. The CAA, which only had a barrister at the hearing, can still request the court’s permission for leave to appeal. It has been given an extended period of 28 days, double the usual period, to consider its position.
ABTA will be able to claim costs of the case, which were described in court as “considerable”, if the CAA decides not to pursue the case. Otherwise it will have to wait until the outcome of any appeal.