Lawyers for the Civil Aviation Authority (CAA) revealed in court on Tuesday (October 13) that the T-ATOL that ensures the regulatory compliance of participating travel agent members of the TTA-Worldchoice organisation has been suspended.
Ian Croxford, prosecuting QC in the case brought by the CAA against Travel Republic, told Stratford Magistrates Court: “The T-ATOL scheme has been suspended. Until a replacement has been devised, the CAA is not taking criminal action against participating parties.”
The scheme was suspended in May and provided ATOL cover for 160 TTA-Worldchoice members.
The CAA has been issuing monthly “letters of comfort” since May – stating an agreement is pending to cover TTA members while a replacement is drafted – after lawyers advised it the T-ATOL almost certainly breached ATOL regulations.
Travel Republic and director Kane Pirie are on summary trial for breach of the ATOL Regulations.
Croxford made the revelation in an exchange with council for the defence during a cross examination of CAA ATOL applications and enforcement team supervisor Mark Hydes.
Earlier, Croxford read Travel Republic’s booking conditions to the court and said: “If the terms and conditions are intended to be a way out of offering a package [holiday], they do not in any way operate to give a way out.”
This brought a challenge from defending counsel Hugo Keith QC, acting for Pirie, who accused Croxford of “spending an inordinate amount of time on agency conditions” and said: “You are making aspersions.”
Regarding the suspension of the T-ATOL, TTA operations director Gary Lewis told Travel Weekly: “The previous fixed term contract between the CAA and TTA expired by mutual agreement at the beginning of May 2009. Whilst a new contract between the TTA and CAA/Air Travel Trust is being discussed and drawn up, letters of comfort have been provided in order to keep protection under T-ATOLS for TTA members and their customers.
“This did not in any way affect the TTA. The TTA takes full responsibility for any failure of a member, whether they sold a package or a single element of a holiday. That has not changed.”
How the CAA-Travel Republic case has developed
- October 13: Travel Republic ’caused serious detriment’ to consumers, says prosecution
- October 12:Travel Republic boss in court over ATOL breach
- July 1:Travel Republic pleads not guilty to ATOL breach
- April 8: Travel Republic vs CAA case postponed until May