The government will consult the travel trade this autumn on proposals to extend consumer financial protection and bring non air packages within the ATOL arrangements.
The proposals will include a version of the "flight plus" option suggested by ABTA, extending protection to all flights sold with another holiday component.
But they will not include widening the ATOL scheme to all flights, as demanded by the trade.
Notice of the consultation is included in the Civil Aviation Authority document published on Monday giving details of the proposal to increase the ATOL Protection Contribution to £3.
It reveals the Department for Transport is also considering allowing airlines selling holiday components to join the ATOL scheme.
The document reports a DfT and CAA review of the XL Leisure Group failure concluded the existing protection arrangements are difficult for both consumers and the trade to understand.
- Discuss the future of the ATOL scheme on the travelhub forums
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