Abta has welcomed the government’s response on the review of the Package Travel Directive and Atol implementation.
The Department for Transport’s document makes it clear that the UK will need to await the final outcome EU negotiations into the PTD – not expected before next spring – before being able to make any specific proposals on implementation of the Directive and Atol reform.
However, it suggests that there are “a number of potential areas to reform the current arrangements for insolvency protection for package travel holidays”.
The areas where further work will be carried out “to develop our thinking on implementation and reform” include:
- repatriation;
- UK “flight only” protection;
- cost benefits data;
- financial protection mechanisms; and
- implementation, legislation and enforcement issues.
“In order to minimise potential disruptive changes to legislation, and to ensure consistency between them, the government is not proposing to make any changes to legislation for Atol reform until after a Directive has been agreed,” the document says.
“In the meantime, we will seek to work closely with industry and consumer groups through ad hoc stakeholder briefing meetings, the Air Travel Insolvency Protection Advisory Committee, and by involving travel and trade associations and associated third parties directly in the projects above where appropriate. We will also continue to work very closely with the Civil Aviation Authority.”
The report makes it clear that taxpayers should not bear the costs of insolvency protection for the travel industry and its consumers, “therefore, government policy is to seek market-based solutions, where possible. Similarly, any options considered should be proportionate to the risk of failure and take into account competition-related issues”.
In response, Abta said: “In particular, we agree that it is appropriate to align the future of Atol with the ongoing revision of the PTD in Europe.
“This will minimise disruption to the industry and represents an efficient and sensible way to proceed.
“We recognise some of the challenges identified in the response, particularly around cross-border trading, enforcement and the challenge of ensuring that an eventual scheme is proportionate to risk, and affordable.
“However, as noted, the revision of the PTD is currently being discussed in Europe; Abta remains actively engaged in this process.
“Abta will continue to work closely with the DfT, BIS [Department for Business Innovation and Skills] and other stakeholders across Europe in order to supply the necessary data and feedback from the industry in order to continue to influence the process of reforming financial protection arrangements.
“We look forward to seeing the BIS response on the call for evidence on the Package Travel and assisted travel arrangements directive.”