The Civil Aviation Authority has decided not to pursue its appeal against the not guilty ruling in the case against Travel Republic managing director Kane Pirie.

However, it will continue to appeal the judge’s decision to rule in favour of the online travel agency in a court case last year.

The CAA took legal action against Travel Republic over an alleged breach of Atol regulations. A judge at Westminster Magistrates’ Court dismissed the charges, saying the prosecution had failed to prove that Travel Republic did anything other than “sell components of holidays separately, but at the same time”.

A CAA spokeswoman said:  “We have concluded that the public interest does not require that an appeal in relation to Mr Pirie should continue.

“However, we have concluded that it is in the public interest that the appeal in relation to Travel Republic Ltd should continue.”

A hearing date has been set for Friday, May 7 at the Royal Courts of Justice.