THE CIVIL Aviation Authority is investigating how it can tighten loopholes in the Air Travel Organiser’s Licence system as it looks to place greater emphasis on consumer protection.
The move follows the formation of a Consumer Protection Group which will be run as a stand-alone business within the CAA. Previously, ATOL and consumer responsibilities were handled centrally.
Head of licensing Helen Simpson, who will spearhead the new set-up, said the split will enable a greater focus to be placed on consumer protection.
“It is a large part of the CAA and it was felt that it was perhaps not getting the attention it needs,” she said. “As a separate business, we can focus more clearly on protecting the interests of travellers.”
The group will have representation on the main CAA board and will have greater control over its actions.
Current head of ATOL David Moesli will become deputy director when the restructure comes into place on February 1.
Simpson said the new group will start looking at ways it can shore up loopholes where customers believe they are buying a package.
“In some cases, the consumer is buying separate elements of a holiday but the agent has put it together into a pseudo-package,” she said. “In these cases the agent may be selling a flight ticket but is not bonded for it.
“This is open to abuse and is something we are looking at tightening up. But we can only operate within our legislative powers. To go further it would need approval from the Department of Trade and Industry.”
Meanwhile, the CAAhas simplified the way niche operators with less than 600 seats are bonded.
“They now only have to produce a balance sheet rather than go through the full appraisal,” said Moesli. “We have limited resources and want to focus on what we see as the genuine risky businesses.”