ATOL and package travel reform to wait until Spring 2015
The Government has said it will wait until the new European Package Travel Directive due next Spring before suggesting any further ATOL reform.
In its response to the recent consultation on ATOL and PTD reform, the Department of Transport has highlighted a number of areas which it believes should be looked at in more detail.
These include:
• Repatriation
• UK "flight only" protection
• cost benefits data
• financial protection mechanisms
• implementation, legislation and enforcement issues.
But the DfT response said it would await the outcome of the EU negotiations, due next Spring, before finalising its proposals.
It said: "In order to minimise potential disruptive changes to legislation, and to ensure consistency between them, the Government is not proposing to make any changes to legislation for ATOL reform until after a Directive has been agreed."
The report also said that any financial protection scheme should not be paid for by the taxpayer.
"Government policy is to seek market-based solutions, where possible," it stated.
"Similarly, any options considered should be proportionate to the risk of failure and take into account competition-related issues."
ABTA said: "In particular, we agree that it is appropriate to align the future of ATOL with the ongoing revision of the PTD in Europe.
"We recognise some of the challenges identified in the response, particularly around cross-border trading, enforcement and the challenge of ensuring that an eventual scheme is proportionate to risk, and affordable."
Diane
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