News

CAA to clarify ATOL regulations - 30 Nov 2006

(30 November 2006)

The Civil Aviation Authority will bring out a risk assessment report next year to help agents understand ATOL regulations.

CAA group director consumer protection Richard Jackson will start work on the report in January, once the Department of Trade and Industry issues guidelines on what constitutes a package following the judicial review and Court of Appeal ruling.

Jackson said: “The DTI will produce its guidance in the New Year. I aim to provide agents with a risk analysis, so they can understand the problems.”

Although ABTA has claimed victory over the CAA in the review, Jackson warned agents are “horrendously exposed”.

“The judgement gave out an ABC of how to put together components which don’t constitute a package,” he said.

“But what happens when a travel agent thinks he is doing it right, but gets it wrong and is sued? The County Court will back the consumer and say he ought to be protected. I would advise the agent to get liability insurance,” said Jackson.

When asked if ABTA would help a member who unwittingly fell foul of ATOL regulations, ABTA chief executive Mark Tanzer said: “We would support any member. However, he acknowledged there was still confusion. “We need to put something in place urgently in the next 12 months,” he said.