Goldtrail collapse cost CAA £10.5 million

Posted 06/07/2011

The Air Travel Trust deficit has rocketed by £10.5 million thanks to the collapse of Goldtrail, according to the CAA’s annual report and financial statements.

Standing at £42.3million for the year ending March 31 2011, the deficit was also not helped by the 29 ATOL holders that failed in that period which cost the fund £46.8 million.

In that year, the ATT received income of £47.7 million, in the main from ATOL protection contributions for 18.5 million protected passengers.

What exactly happened in the lead up to the collapse of Goldtrail is still under investigation, said the CAA, as its failure “highlighted the poor standards of customer documentation issued by some in the travel industry, leading to unacceptable delays in refunds to holidaymakers.”

ATT Chairman Roger Mountford said:“Despite the Trust facing an increase in its deficit, largely caused by the failure of Goldtrail Travel Limited, it has continued to meet its objective of providing refunds to customers affected by the failure of their ATOL holder.

“This past financial year has seen the Trust either repatriate or refund a record 193,000 UK holidaymakers. Government has published its consultation on reforming the scope of ATOL and bringing clarity to consumers, the trade and the ATT as to who is covered by the ATOL scheme.  We look forward to a decision by the Government to proceed with a reform that is clearly in the public interest.”

Originally published 6 Jul 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/1670b146/l/0L0Stravelmole0N0Cstories0C11483790Bphp0Dmpnlog0F1/story01.htm