AAC issues stark warning on Flight Plus

Posted 16/11/2011

The Association of ATOL Companies (AAC) is warning that the timescale for introducing ATOL reforms is "totally unrealistic".

In a statement issued today, the AAC said that introducing ATOL reforms on April 1 next year, on the same date as changes to air passenger duty are expected to kick in, would place too great a burden on travel agents.

AAC legal advisor Alan Bowen said: "Although the Department for Transport continues to maintain an aim of April 1 2012 as the start date, many of our members have expressed increasing concerns that the timescale is now unrealistic.

"We anticipate an announcement of an increase in APD in the Chancellor's Statement on November 29. If, as we fear, the changes are to take place on April 1, the burden of collecting additional tax on tickets already issued cannot be underestimated and changing the ATOL scheme on the same day maybe totally unrealistic."

However, the AAC has given the warmest welcome yet to the Civil Aviation Authority's Information Paper outlining the proposed ATOL reforms, published yesterday.

While ABTA chief executive Mark Tanzer said it was still seeking a clear commitment that the ATOL scheme would be extended to include airlines selling holidays, the AAC said it was delighted the DfT and the CAA has listened to the trade and "reacted positively". In particular, it welcomed moves to prevent companies from trading without an ATOL as, from April 1, customers who buy dynamically packaged products from non-licensed agents will only be eligible for repatriation, not refunds.

Bowen said: "We are pleased to see the first steps being taken to make trading as an agent for the consumer even more uncomfortable for those that seek to avoid ATOL protection. Currently a number of agents, particularly on-line agents, have used this loophole to avoid the ATOL scheme completely and the proposed changes will make customers more aware of the risks and the proposed refusal by the Air Travel Trust to offer refunds for flights sold this way.

"The AAC supports the plans to exclude business travel from both Flight Only and Flight Plus sales under the new regime but remains concerned at the timescales proposed."

By Linsey McNeill
 

Originally published 15 Nov 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/1a19dbff/l/0L0Stravelmole0N0Cstories0C1150A2530Bphp0Dmpnlog0F1/story01.htm