ABTA is reviewing a reply from the Civil Aviation Authority (CAA) over its concerns about the proposed increase in the ATOL Protection Contribution to £3.

Following the CAA’s launch of a consultation over APC at the end of April, legal firm K&L Gates wrote to the CAA on ABTA’s behalf to request further information.

ABTA chief executive Mark Tanzer said the association’s queries were mostly concerned with the collapse of XL Leisure Group last September, which has been cited as the main reason for the proposed increase.

This is despite the fact that, in April 2007, the CAA said the £1 levy would cover the fallout of such an event.

Tanzer said ABTA had asked the CAA for a complete breakdown of the costs incurred and yet to be incurred, and the proportion of the claims dealt with.

It had also asked for a full explanation as to why the possibility of XL’s failure fell outside the original consultation in April 2007.

Furthermore, the association wanted to know when the decision was taken that the £1 APC would no longer be sufficient, and who took it.

ABTA is also asking for the consultation period to be extended to 12 weeks from six, in line with the government’s code of practice on consultation.

Having received a reply on May 19, Tanzer said it was too early to discuss the contents.

A CAA spokesman added: “Correspondence between the CAA and stakeholders is part of the consultation process, and we do not comment on ongoing dialogue.

“The consultation closes on June 12, at which point we will review the responses and a summary of the replies to the questions posed in the consultation document will be published on our website shortly afterwards.”