Trade urged to fight ATOL reforms before it’s too late
A travel industry expert has sounded a war cry to the trade to fight the Government’s proposed ATOL reforms unless airlines are brought into the scheme.
Speaking at the annual Barclays Corporate Travel Forum, Chris Photi, senior partner at travel accountants White Hart Associates urged the trade not to accept the latest proposal to force agents but not airlines to pay to protect customers’ holidays.
Photi said companies would find ways to wriggle out of complying with the regulations. "This is another fudge," he said. "I don’t think Flight Plus is a stepping stone to better consumer protection. Why not have a fairer scheme that everyone wants to participate in?"
His comments came as Thomas Cook UK and Ireland chief executive Ian Ailles admitted the company was looking at restructuring as an airline to avoid Flight Plus charges, which is similar to the way it operates in Germany. The matter had been under consideration for several months, said Ailles.
The only way to force the whole industry to comply would be to introduce an all-airline levy, said Photi, which he said could be built into air passenger duty.
He warned the trade that unless they responded to the Government’s delayed consultation on ATOL reform, now due to start early next month, they’ll end up with more regulation they don’t want. "I urge you to respond, let the Government know what you think because if you don’t, when you complain about Flight Plus the Civil Aviation Authority will turn around and say that it’s what you wanted."
Travel Repulic managing director Kane Pirie said the trade should "jump on comments" made by aviation minister Therea Villiers last week that the Government might bring airlines into the ATOL scheme.
However, the CAA’s director of consumer protection Richard Jackson was adamant this would not happen as part of the current reform. "This government has taken the debate forward, but there is now way it is going to deal with the airlines now," he said.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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