ATOL deadline approaches

The travel industry has just a few more days to make its case to the Government over the reform of ATOL regulations.

With the deadline for the consultation ending on Thursday, ABTA has made a last-minute appeal for more clarity and time.

It has put together a response after “the biggest ever consultation process undertaken by the association”.

It is calling for:

– the inclusion of airlines in the ATOL scheme as an essential second step after an overwhelming 95% of respondents to its consultation questionnaire agreed that airlines should be included

– more definition regarding the protection to be offered by the Air Travel Trust Fund, and hence the backup insurance requirements for Flight-Plus arrangers; the mechanism for implementing the ATOL Certificate; and the bonding requirements for new ATOL licensees.

– more time, because the planned January 2012 implementation “may endanger the quality and effectiveness of the reforms, as well as placing travel businesses under unnecessary and undue pressure”

– more clarity, because “there are still many important questions unanswered”.

Chief executive Mark Tanzer said: " We remain very concerned about some of the practical issues involved in the introduction of key elements of the proposals such as the definition of the protection to be offered by the Air Travel Trust Fund and the mechanism for implementing the ATOL Certificate.

“We want a workable solution, not just a quick solution, and believe that the current timetable of January 1st may endanger the quality of the reforms."

Meanwhile, Elman Wall, the accountancy and taxation experts which specialises in the travel industry, has urged the Department of Transport to work more closely with European legislation.

MD Jonathan Wall said: “There is little reason why the Package Travel Regulations should not afford consistent pan-European financial protection on all holidays offered, irrespective of the method of transport.

“Clearly, there is much benefit between a coordinated and coherent set of Regulations between UK and Europe, resulting in a certain amount of dovetailing between the legal and practical requirements of a new ATOL system and new regulations.”

But the airline sector was quick to dismiss the idea that they should come under the ATOL scheme.

Mike Carrivick, chief executive of BAR UK which represents 86 airlines, said: “There is a lack of clarity over consumer protection that needs addressing; however the proposed reforms fail to meet the objectives set out in the consultation. They add confusion rather than take it away.”

“BAR UK proposes that ATOL protection continues to apply to fully-packaged travel and specifically excludes everything else. The consumer can then make their own decision on purchasing insurance when not covered by an ATOL protected package. In any event, many consumers are protected through the use of credit cards, so why pay for something twice?”

“We support others in the industry who are also aghast at these reforms and urge the DfT to postpone any changes to the current ATOL regime and completely review the proposals.”

by Bev Fearis