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(16 December 2004)
THE Civil Aviation Authority has struck a deal with Barclays Merchant Services to offer the trade cheaper mini-ATOL coverage.
Barclays will market the option to the trade in the new year. The arrangement covers banking, credit card and air travel financial protection and is designed as a cheaper option than if travel organisers set up a plan themselves.
The main benefit is that the CAA will not require companies signed up to the Barclays scheme to provide a bond.
Deputy director of consumer protection group David Moesli said: “The combination of banking, credit card and air travel financial protection arrangements will work out cheaper all bundled up in one package.”
Moesli added the benefits of the scheme could attract existing full ATOL holders to sign up.
Under the scheme, Barclays is responsible for providing refunds to customers of failed companies and will reimburse the CAA for the cost of repatriating overseas holidaymakers.
Small business or mini-ATOLs apply to licences covering a maximum of 500 passengers a year.
Since the scheme’s launch in October 2003, 250 mini-ATOLs have been granted, according to Moesli.
