The UK government is to offer greater financial protection for millions more package holidaymakers under the ATOL scheme. The programme, which is run by the CAA, currently covers against tour operator collapses but the new proposals will be extended to include air ticket-only trips.
Speaking today at ABTA’s Travel Law Seminar, Kate Jennings, Head Aviation Policy Implementation for the Department for Transport, confirmed that the government still expects reform of the current system of ATOL financial protection
The first results of the Department of Transport ATOL Reform consultation will be unveiled at the end of April.
British travellers are poised to receive greater protection should an airline go bankrupt, following government plans for an overhaul to the ATOL protection system.
A U-turn by ATOL means thousands of holidaymakers caught up in the collapse of XL Leisure are facing yet further delays in their compensations claims.Package holidays booked with the failed leisure giant were covered by the Civil Aviation Authority‘s ATOL bonding scheme, meaning victims could claim their money back. However ATOL is now using a legal loophole to shift the onus on to credit card companies for customers who paid fully or partly with plastic.