The CAA will announce a decision on the latest round of Atol reform and future of the small business Atol (SBA) in early February.
The authority declined to comment on Travel Weekly’s report last week that it will drop plans to scrap the SBA and instead modify small-business licensing. But a spokesman confirmed the CAA would take account of industry responses to its proposals which questioned the wisdom of reform ahead of a new Package Travel Directive (PTD).
The spokesman said: “The ‘Rebalancing ATOL’ consultation garnered more than 160 responses, which have been invaluable. It’s our intention to publish our full response by early February, which will set out our conclusions and explain the rationale for the decisions we have come to.”
Travel Weekly understands the CAA will proceed with stricter financial monitoring of smaller Atol holders. However, the changes will not now start from April as planned. The costs of compliance are still likely to rise as the CAA switches to a revenue-based licensing approach for 950 SBA holders and introduces new financial criteria.
Abta led industry calls for any changes to await the package travel revision. The association declined to comment on Travel Weekly’s report. But industry consultant Andy Cooper, former head of the Federation of Tour Operators, said: “It would be welcome if common sense prevails.” He said closer financial monitoring made sense since “failures tend to come among smaller companies. [But] to get rid of the existing scheme before the PTD revision makes no sense.”
CAA head of Atol Andy Cohen will speak at a Travlaw event in London next Tuesday, January 13. Details from Rivka@travlaw.co.uk