Failed ATOL holder ordered to repay £200,000
A director of a failed operator found to be overtrading his ATOL licence has been ordered to refund more than £200,000 paid out after the company collapsed six years ago.
In a test case brought by the Civil Aviation Authority, former Dayrise Holidays director Vassilis Kettiros has been told to pay back the sum paid out to customers by the Air Travel Trust when the ATOL-holding company failed in 1998.
He has been ordered to pay a total of £234,573 including interest, plus costs, following a hearing the Central London County Court.
The ruling was made after the CAA produced evidence that the Greece and Cyprus operator had overtraded its licence and served notice that it would call in his guarantee.
North London-based Dayrise was licensed to carry 30,000 passengers. But its £1 million ATOL bond proved insufficient to cover all claims after it failed in September 1998. The CAA was forced to make a call on the back-up Air Travel Trust consumer protection fund, which paid out £204,605.
Mr Kettiros and his father, also a fellow director, had provided guarantees to the CAA which undertook that if the company overtraded its ATOL authorisation and then failed, they would reimburse the Air Travel Trust, the authority said.
The matter was taken to court by the trustees of the Air Travel Trust after Mr Kettitos refused to meet his obligations under the guarantee, and a judgement was obtained against him. Mr Kettiros made an application to have the judgement set aside but failed to follow this up and it was struck out on 7 June.
CAA consumer protection group deputy director David Moesli said: “This is the first time that an overtrading guarantee has been tested in court and we’re glad that there was such a clear ruling as to liability. In most cases we’ve been able to enforce guarantees out of court, but where we’re unable to do so we will take court action.”
The Air Travel Trust went into the red in 1996 following a number of large company failures in the early 1990s. The Trust is more than £9 million in deficit but a credit facility is in force secured by a government guarantee of £21 million.
Report by Phil Davies
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Airlines suspend Madagascar services following unrest and army revolt
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports