ABTA is investigating whether Olympic Holidays is in breach of the Package Travel Regulations by asking agents to collect unpaid Air Passenger Duty from customers.

A letter sent by the operator asks for agents’ “co-operation” and is offering a £4 administration fee per booking when the outstanding tax is collected.

Commercial director Photis Lambrianides said Olympic had discussed the legality of such a move with ABTA. “We are asking agents to try to collect it on our behalf, but we’re not making them responsible for the costs if they don’t.”

However, an ABTA spokesman said the association is reviewing the letter sent to agents.

Check In Cruise Club managing director Anthony Blackmore said ABTA had been very clear that under the Package Travel Regulations principals are liable to pay any tax or surcharge less than 2% of the value of the holiday.