The CAA’s demands for financial data from larger Atol-holders risks “paralysis by analysis”, according to Chris Photi, head of travel and leisure at White Hart Associates.

Photi told Travel Weekly’s Future of Travel Week summit: “The CAA is asking for updated financial information. Its requirements have moved from monthly cashflows to weekly cashflows, putting real pressure on finance teams.

“The CAA is in no way relaxing its liquidity tests, albeit it’s accepting government-supported loan arrangements as a replacement of liquidity for a licence-holder.

“Licence-holders with Atols for more than £20 million are being approached by the CAA on the basis almost of ‘paralysis by analysis’.”

Photi acknowledged: “The CAA wants to do whatever it can to get a licence-holder through, but there is only so much juice you can squeeze from an orange.”

He described the CAA at the time of the March Atol renewals as “rabbits caught in the headlights”.

Photi said: “They were saying ‘We’re going to plough on’. Then it was ‘Give us a model’, ‘Give us another model’, ‘Sensitise it like this’, ‘Sensitise it like that’. You’re a beleaguered finance director trying to put this together and it’s changing every week.”

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