HUNDREDS of ABTA agents have been permitted to take advanced payment for scheduled airline tickets without fear of punishment for breaching regulations.
Under current rules, a retailer selling a flight must provide a ticket immediately unless the sale is covered by an Air Travel Organisers’ Licence.
Civil Aviation Authorityhead of licensing David Moesli explained that customers who have paid for a flight are not protected during the period it takes for their ticket to arrive. “If the agency should go out of business the customer loses out, but if they have a ticket in their hand the airline must honour it,” he said.
In an important new move, ABTA has given a guarantee to the CAA that it will provide cover for its members during the time it takes for the customer to receive the ticket. Non-ABTA agents are still bound by the regulations.
The association predicted it would benefit about 250 of its members.
“This will give greater flexibility to our members while maintaining the protection of customers,” said ABTA head of legal services Riccardo Nardi. “Branches of multiple travel agencies with central ticketing facilities have found great difficulty complying with ATOL conditions.”
Agents must issue the ticket within 24hrs of payment and issue a receipt explaining to customers how their money is protected.
A spokesman said exceptions to the 24hr ruling will be made where tickets are purchased at weekends.
The CAA said it is aware that some agents breach the regulations.
“Many agency chains only hold ticketing facilities at their head office making it impossible for branches to issue tickets immediately,” said Moesli. “ABTA approached us offering to cover members affected by the regulations which, after discussion, we accepted.
“It is imperative, however, that customers receive tickets as soon as possible. We are aware that some agents, which may have cash-flow problems, hold on to a customer’s money and do not issue tickets for several weeks. This is where our officers become involved.”
The new arrangement, which takes effect on May 1, only applies to published fares. Discounted tickets and packages will still need to be covered by an ATOL.