CAA offers small business ATOLs at half price
The Civil Aviation Authority (CAA) has announced that it will charge small businesses applying for an ATOL half the amount of a standard ATOL.
The Small Business ATOL (SBA) will cost £690 if obtained before the end of March next year, instead of £1,380 – the cost of a standard ATOL for one year.
Firms selling fewer than 500 holidays a year can apply for the SBA. Those applying are subject to the usual fitness tests and have to provide a bond and personal overtrading guarantees from Directors, but do not have to meet the normal ATOL financial tests which apply to standard ATOLs.
The CAA introduced the SBA following recent changes it made to ATOL Regulations over the issue of “split contracts”, whereby companies sell flights and other travel products under separate contracts. The changes, in place from October 8, mean all operators selling flights and air holidays, even under split contracts, must hold a licence from the CAA.
CAA deputy director of consumer protection, David Moesli said: “When we first outlined the SBA concept we said that the fees for this licence would reflect the reduced administration involved. We can now confirm that the annual fixed fees will be half those of a standard ATOL. In addition, SBAs do not pay any variable passenger fees.
Mr Moesli added that the CAA had already started processing SBA applications and was receiving good feedback from small operators. The price will be reviewed from April 1 2004, at the same time as the standard ATOL price is reviewed.
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