THE CIVIL Aviation Authority has began consultation on proposals to replenish the Air Travel Trust Fund and reform ATOL bonding through the introduction of a £1 ‘Consumer Protection Charge’.
This follows on from the CAA’s successful appeal against a High Court ruling last month that appeared to settle the controversial issue of dynamic packaging and financial protection.
Under CAA’s proposals, ATOL holders would collect the £1 per passenger charge when booking only, to help build up a £250m fund to enable the removal of bonding.
A consultation document outlines the CAA’s views on the potential reduction together with principal issues associated with such a reform and how these issues could be tackled.
A consultation document outlines the CAA’s views on the potential reduction together with principal issues associated with such a reform and how these issues could be tackled.
CAA consumer protection group director Richard Jackson says: "If bonding is removed, there is considerable scope to simplify ATOL but at the same time it is vital that we ensure there are sufficient safeguards in place to prevent any disproportionate increase in the costs of failure, which will be met by the new fund.”
The CAA is distributing its paper to the travel industry and to other interested parties, and is asking for responses by 19 May.
A copy of the consultation document can be obtained from the ATOL website at
www.atol.org.uk.
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