Why do I have to produce a new bond when my current bond is valid for another 6 months?
A bond is required to cover the period of the new licence plus a six month run off and we therefore cannot rely on the current bond, which relates to the current licence. Where a bond provider enters into a new bond and a new ATOL is granted, there can be no call on the existing bond.
Why are bonds required to be valid for 6 months beyond the expiry of an ATOL?
This is so that if an ATOL is not renewed and the firm subsequently fails, the bond is still available to be used to protect licensable passengers who booked while the ATOL was valid. It does not entitle you to take new licensable bookings.
I am applying for renewal for the first time. Will my bond amount/percentage used to calculate it reduce?
No. Bond levels are calculated based on the amount of time a licence has been held and if this is less than a year, the new bond will remain at the current amount/percentage. Please note that there are various factors that can influence the level of bond required and the full policy on bonding can be viewed here.