News

THE Civil Aviation Authority’s bonding requirements have been called into question following the collapse of an independent US operator.

Kent-based Vacation USA has ceased trading after failing to renew its ATOL, but its director John Foster has blamed inflexible CAA rules for the company’s demise.

He claimed he could have saved the company if the CAA had not insisted it refund all clients booked when its licence ran out on March 27, and then rebook them a few days later when a new ATOL had been issued.

“There has got to be a better way of bonding,” he said.

The failure of Vacation USA comes less than three months after the failure of Bluebird Holidays, which also specialised in US breaks.

Angry Foster said Vacation USA’s bond rose to £152,000 following September 11 and the situation was made harder when insurance companies were reluctant to cover US specialists.

Foster, who could lose his house following the collapse of the company, believes the current system will force more independent operators out of the market as they will be unable to afford the bonds or meet the CAA’s demands. “It’s a real shame. We are one small company and the Big Four will soon be the only ones left, which is not practical for the consumer,” said Foster, a former ILG sales manager.

He added that his company had sold 70% of capacity for summer 2002 so would have been profitable long term.

A CAA spokeswoman said it could not discuss individual companies. “Vacation USA has not renewed its ATOL. The requirements that are necessary to renew an ATOL are agreed with the company,” she said.