Tour operators planning severe cuts in capacity may be required to maintain a bond alongside payment of the new ATOL Protection Contribution.
The £1 APC will be levied on all ATOL-protected holidays from April 1, allowing the release of most tour operators’ bonds.
However, companies trading for less than four years or considered to have changed their business model or trading unprofitably may have to retain a bond.
The Civil Aviation Authority consumer protection group deputy director David Moesli confirmed: “Not all companies will have their bonds released. Where we consider companies to be higher risk we may require a bond be kept in place.”
The CAA is confident the new financial protection scheme, formally signed off by ministers last month, will prove simpler to administer for ATOL holders.
“There is just one licence, based on reported sales,” said Moesli. “Holders of small business ATOLs should not require much contact with us.”
Consumer protection group director Richard Jackson added: “In the past we limited the number of high-impact companies we looked at to the top 10-15. Now we want to know the top 100 a lot better – and we have beefed up our risk analysis.”
“We will be keeping an eye on payments over the first year. If someone misses a payment, we will be in straight away.”
Companies must include the APC in holiday prices – either providing a price breakdown explaining the £1 levy or saying the sale is ATOL protected.
Proposals for its implementation should be issued on November 19, initiating a six-week consultation that will extend into late January because of the Christmas holiday.