The Civil Aviation Authority has launched a consultation on arrangements for the changed Air Travel Organisers’ Licence (ATOL) regime to be introduced next April.
The Government gave the go-ahead last month for a £1 levy or ATOL Protection Contribution (APC) on package-holiday and other ATOL-protected sales from April 1.
This will end the requirement on most tour operators to organise a bond to cover the cost of repatriation and compensation to consumers in the event of a company failure.
The levy will replenish the existing Air Travel Trust Fund and protect consumers against future failures.
The consultation document sets out changes to the current ATOL standard terms and the new licensing and financial arrangements.
The principal changes involve the new reporting system attached to collecting the APC, changes to the financial information required by the CAA and its monitoring of companies, and a requirement on holders to appoint someone to oversee compliance. Tour operators may still be required to supply a bond “in certain circumstances”.
CAA consumer protection group director Richard Jackson said: “The new terms will provide sufficient but proportionate regulatory oversight that will allow us to identify potential failures at an early stage. It is important ATOL holders understand the conditions and arrangements for payment.”
The CAA will stage a series of road shows around the country to explain these from November 20. It revealed more than 550 firms have already booked one-to-one appointments.