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THE Civil Aviation Authority has said it is not concerned about the lack of applicants for its new mini-ATOL, despite slashing the application fee.

Nearly a month after launching the licence, which was introduced to put an end to split contracting, the body has received just 70 applications out of a target of 500.

The CAA has halved the cost of applying for a Small Business ATOL from £1,380 to £690. Deputy director of consumer protection David Moesli said: “It’s nothing to do with trying to encourage more people to apply. We are happy with the current amount.

“The reduction in price reflects the amount of work we have to do when we receive an application. Applicants for the Small Business ATOL don’t have to provide financial details, which takes up most of our time in normal ATOL applications.”

Agents who have already applied and paid for the new ATOL will receive a refund.

Moesli said the CAA was starting to contact all those it believes need to apply for the ATOL and will begin to clamp down on agents that refuse to comply by the end of the year.

He said: “We are working on who needs a licence. Some people at the lower end have simply stopped operating, others have changed their business practices and some are looking at the way they operate to see whether they need to apply.”

Midconsort chief executive Charles Eftichiou welcomed the price cut. “This will help  agents on the borderline who were thinking of applying to make the final push,” he said. “Some agents do need the new ATOL and the reduction will relieve the financial burden.”