ABTA is urging the trade to support its proposal to the Civil Aviation Authority calling for the extension of the ATOL Protection Contribution (APC) beyond package holidays.
ABTA has proposed that sales of all flights plus other services, whether they are packages or not, be covered under the scheme. ABTA has also suggested that flight-only purchases should be protected, but admits that may “require more extensive statutory reform”.
The proposal does not affect the agency status of retail travel agents, who do not wish to become tour operators. Instead, it calls for any company selling a flight plus other services to be an ATOL holder, unless it is acting as an agent for another company.
ABTA chairman John McEwan has called for members to support the proposal. He said: “We have a real opportunity to effect a step-change with regard to consumer financial protection and our chances of success are that much greater if we are unified.
“The Civil Aviation Authority (CAA) will shortly commence discussions with the industry and should you be contacted, I would urge you to support the ABTA proposal.”
The CAA and Department for Transport are planning to produce a further consultation document later this year, ahead of a government review of the ATOL scheme.
Last week parliamentary secretary of state for transport Paul Clark restated the government’s commitment to consult on the reform on ATOL in the autumn. In a response to a question posed by shadow transport minister Julian Brazier, he said the review would be conducted “with the aim of providing greater clarity for consumers about which holidays are covered by ATOL”.
Brazier added: “There are no plans to extend financial protection to all air passengers. The government rejected this option in 2005 as disproportionate to the risks involved, and this remains our position.”
The ATOL Protection Contribution is to increase from £1 to £2.50 from October 1.
What do you think of the proposal? Have your say on travelweekly.co.uk/travelhub