More than a third (36%) of the travel companies due to renew their Atol this month are yet to apply, according to the Civil Aviation Authority.
The regulator is urging firms to submit their renewal application to avoid a delay to licence terms being offered.
It said any travel companies concerned about their upcoming renewal should submit their application and supporting information as soon as possible so that CAA can discuss their terms of renewal and support them through the process.
“In assessing an application, the Civil Aviation Authority considers the financial resources and arrangements available to all travel companies, and therefore needs to closely assess those businesses applying that need to find additional support to continue to trade, but this can only be done if those Atol holders discuss their position openly and in a timely manner,” said a CAA statement.
It added: “The Civil Aviation Authority understands the challenges the industry faces, and will continue to work closely with the industry, however the Atol scheme exists to provide consumers’ protection and so it must make sure that it has complete and accurate financial information before considering a renewal.”
Michael Budge, head of Atol at the CAA, commented: “While the industry is on the road to recovery, we understand the challenges that travel companies continue to face and are working closely with them to support their licence renewals.
“Applications must be thoroughly assessed and where licence conditions are required, these must be met before the new licence can be granted.
“Businesses concerned about their renewal should submit their applications as soon as possible for us to work with them through any issues and avoid delays to their ability to sell package holidays.”
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