Abta has welcomed the Civil Aviation Authority’s update on Atol reform and will consult with its members and across the industry to formulate its response to the plans.
The regulator issued an update on Atol reform today (January 24) with a ‘request for information’ from industry stakeholders to help finalise its proposals to improve the protection of consumer payments and the financial resilience of the scheme.
The association said: “It is right the CAA has provided its latest thinking, and that businesses will be invited to share views before firm proposals are developed, particularly as the first-stage consultation occurred at the height of Covid-related disruption within the industry.”
As part of the process, Abta will be reconvening its focus groups on financial protection, which include representatives from the travel industry and the main financial services sectors, including banks, merchant acquirers, bond obligors and financial failure insurance providers.
The Abta-led groups originally met in the summer to exchange views on current financial protection arrangements and the existing proposed options under the CAA’s Atol reform consultation.
Mark Tanzer, Abta chief executive, said: “We’re pleased to see the CAA publish this update on Atol reform. It has been much anticipated and today’s development is the next step in reaching clarity about future regulations and requirements.
“We’ll be consulting with our members to get their insight, and also bringing together representatives from the wider financial protection landscape in February.
“We’d really encourage members to engage with our process so that we can provide an informed and constructive response to influence the CAA’s decisions.”
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