The Air Travel Insolvency Protection Advisory Committee (Atipac) has called on the CAA to phase in changes to Atol financial requirements and “include the use of consumer money by airlines” in the reforms.
A recent Atipac report also urges the government to widen the review of consumer financial protection to include airline insolvency and the Package Travel Regulations (PTRs).
The government commissioned an Airline Insolvency Review in the wake of Monarch’s failure in 2017 but has sat on the recommendations.
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The July report from Atipac, which advises the transport secretary, notes “the context in which the Airline Insolvency Review’s work was published has changed” but argues: “There is merit in developing a regime that protects consumers and has the potential to reduce costs to the taxpayer if an airline were to fail in future.”
On Atol reform, it insists any changes “must be phased in over a manageable period of time” and argues: “Airlines and travel organisers are part of the same travel ecosystem, especially as regards the cash used to pay for flight seats.”
The report suggests a review of the PTRs should re-examine “the two-week timeframe for providing consumer refunds”.
In an introduction the report, which goes to transport secretary Grant Shapps, Atipac chair Sandra Webber argues: “Now is the time to . . . address pre-pandemic problems.
“Brexit has provided an opportunity to review the PTRs; the CAA is already consulting on reforms to Atol; [the] Airline Insolvency Review of 2019 could be picked up.”
The CAA received more than 300 responses to its consultation on Atol reform, and is working through them.
Head of Atol licencing Michael Budge insisted “no decision has yet been made” on potential reforms, and said proposals will be published in spring 2022.
“At that point, Atol holders and other stakeholders will be able to further comment on the proposals, prior to any changes being made or transition period starting,” he said.
The Atpiac report also included a series of warnings to the government on the impact of changing travel restrictions and the imminent withdrawal of financial support.