The Civil Aviation Authority (CAA) has written to more than 100 travel businesses in the UK that it believes may be continuing to sell air packages without the protection of an ATOL.

In January this year, the Department for Business Enterprise and Regulatory Reform (BERR) issued guidance on what constitutes a package for the purposes of the Package Travel, Package Holidays and Package Tours Regulations 1992.  This guidance was prepared in conjunction with other interested UK government departments and was supported by the main travel trade associations in the UK.

Since the publication of the guidance, the CAA, which administers the Air Travel Organisers’ Licensing (ATOL) protection scheme, has been in discussion with both current licence holders and large travel companies that it believes need to hold an ATOL in accordance with the terms of the new guidance.  As a result, there has been an increase of more than 400,000 protected seats added to ATOL licences.

In addition, the CAA has continued to investigate other travel firms that may need an ATOL and the letter, which is being sent to them today, sets out the legal position and invites them to apply for a licence.

Andy Cohen, Head of ATOL Licensing at the CAA, said:  “In the early part of this year we had fruitful discussions with major companies which understood the regulatory position as outlined in the BERR guidance.  These firms, both current ATOL holders and new applicants, responded positively and consequently an additional 400,000 UK holidaymakers will have the benefit of ATOL protection in the next 12 months.

“The letter we are sending today reminds other firms of the need to consider whether they are selling air packages and we are prepared to discuss their activities with them and give advice on ATOL requirements.

“The guidance has now been in the public domain for almost four months and the CAA believes that the majority of travel businesses in the UK should have now considered whether the guidance on the definition of a package indicates they are selling air inclusive packages.  The CAA has always made it clear that it would first undertake a thorough education process, so that business had time to assess the guidance, but ultimately the CAA’s duty is to ensure that consumers receive the protection they are entitled to have by law, and consequently the CAA will take prosecution action if it considers that the ATOL Regulations are being breached”.