Clampdown on split contracts

ANY company selling a package holiday with a flight will have to hold an ATOL following the introduction of new regulations from the Government.

The Department for Transport has laid before Parliament new regulations which, from October 8, will mean firms selling package holidays on the basis of ‘split contracts’ won’t be able to do so without an ATOL.

‘Split contract’ sales are arrangements under which a holiday company sells a flight (which may be ATOL protected) and accommodation, or other travel products, under separate contracts which may or may not be protected.

The Civil Aviation Authority will help companies that need to obtain an ATOL and is offering a new streamlined process for companies selling less than 500 seats every year.

The CAA is also developing, in conjunction with third parties, arrangements under which ATOLS might be issued to small firms on the basis of protection offered by those third parties.

Guidance is available on the ATOL website, www.atol.org.uk or by calling 020 7453 6361.