ATIPAC calls for swift progress on further ATOL reforms

2012-07-24 — /travelprnews.com/ — The Air Travel Insolvency Protection Advisory Committee (ATIPAC) has welcomed the first phase of ATOL Reform, but says much more must be done to protect holidaymakers.

In its annual report, published today, the Committee supports the introduction of Flight Plus sales into ATOL, and the forthcoming production of ATOL Certificates for anyone buying ATOL-protected holidays. ATIPAC believe the Certificate will give an enormous boost to awareness of ATOL, which is long overdue.

ATIPAC has long called for reform to modernise the ATOL scheme and extend consumer protection to ensure the ATOL scheme catches up with changes in the way holiday travel services are provided and consumers purchase them. In this report it says that the current proposals do not go far enough, and that legislation should be introduced to ensure that all flights are protected.

John Cox, Chairman of ATIPAC, said: “ATOL reform is very welcome. But it is a belated recognition that the travel industry has changed beyond recognition in the past twenty years. ATIPAC is clear that there is much, much more to do to create clear and comprehensive financial protection for holidaymakers.”

Looking to the future, the report sets out the Committee’s view that the outlook for the travel industry during the current financial year remains one of instability created by a number of factors: the volatility of sterling exchange rates, the continuing problems within the Euro zone, and the effect on bookings caused by the London 2012 Olympics and Paralympics Games. Moreover, reports of airlines reducing capacity during the summer period could have a detrimental effect on the holiday industry. Both increases in APD and in the cost of fuel add to airlines’ costs; these costs are inevitably passed on to tour operators and thence to their customers. The Committee concludes that none of this bodes well for any short term recovery of the travel industry.

The ATIPAC Annual Report is available on the ATIPAC website here: www.atipac.org.uk

To interview John Cox, Chairman of ATIPAC please contact; the CAA press office on 020 7453 6030.

Notes to Editors

The Air Travel Insolvency Protection Advisory Committee was established by the Secretary of State for Transport in 2000 to keep under review and provide advice to the Civil Aviation Authority, the Trustees of the Air Travel Trust and the Secretary of State for Transport on the financial protection arrangements for air travellers and customers of air travel organisers. The committee’s members include representatives of all the main travel trade bodies and independent and consumer representatives, as well as the CAA. Details can be found in the report.

The Air Travel Organisers’ Licensing scheme (ATOL) is managed by the CAA. It gives comprehensive protection to holidaymakers from being stranded abroad or losing money when purchasing air holidays and flights from licensed tour operators. It is the only licensing scheme for tour operators that sell air holidays and flights. In holding a licence, tour operators meet European Package Travel Directive insolvency protection requirements.

If a licence holder fails, the CAA is responsible for ensuring that customers are either repatriated back to the UK or receive a refund of payments made.

Repatriation costs and refunds are met by the Air Travel Trust Fund, the funds of which principally come from the ATOL Protection Contribution (APC) that each licence holder is required to make when it accepts a booking under its ATOL. In some circumstances a licence holder will have also provided a bond, which is used in the first instance to protect customers.