A joint Atol licensing scheme between the CAA and Abta has been confirmed following yesterday’s publication of Flight-Plus regulations by the Department for Transport.
The agreement will provide smaller travel businesses with a “one stop shop” for licensing following the introduction of reforms on April.
Abta had been awaiting for the government to lay legislation before parliament to give official confirmation of a scheme Travel Weekly revealed was being worked on in February.
The agreement will mean Abta can process applications for members who expect to sell up to £1.5m worth of Atol-protected holidays a year.
No further details have been announced but the scheme has been devised to eliminate the problem of duplication of administration and bonding for Abta members.
Abta has opted not to go down the route of a Approved Body because it is not able to direct what its members sell and was not prepared to accept full financial responsibility.
Andy Cohen, Head of Atol licensing at the CAA, said: “This agreement will help to minimise the administrative burden of changes to the Atol scheme on smaller travel businesses and simplify the process of protecting their Flight-Plus sales.
“We are very grateful to Abta for their collaborative approach to working with us on this important agreement.”
The Abta-Atol Joint Administration Scheme will initially be available to those travel businesses who sell up to £1.5m of Atol bookings annually and are currently Abta members, but are not Atol holders.
For Abta members with existing Atols, there will be an opt-in option at their next Atol renewal in September 2012 or March 2013.
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