CAA aims for fairer ATOL scheme
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
The Civil Aviation Authority (CAA) has proposed ditching the Small Business ATOL (SBA) scheme as it launches consultations with the travel industry over ATOL.
The organisation is looking at a risk-based method of assessing members that have revenue at less than GBP5m and is also looking at more self-service online facilities for all ATOL holders.
Consultations with the industry will run until 6 October particularly in areas that the CAA views as ‘no longer fair, or proportionate’.
The CAA said the removal of SBA and further changes would be phased over a number of years and will be a ‘significant change’ as it looks have accurate reporting and consistency across the industry when it comes to decisions.
Andy Cohen, head of ATOL at the CAA, said: “We are very aware that a financial protection scheme needs to be able to demonstrate that there is fair treatment for all licence holders and, furthermore, where it is clear that there is a higher risk of failure among some members then that needs to be reflected in the regulatory requirements.
“We believe this approach will benefit the travel industry and the consumers that it serves equally. In addition, this is also consistent with better regulation, as the costs of regulation should be proportionate and increased requirements should only be targeted at business models which represent greater risk.”
Comments are closed.