The purpose of the Air Travel Trust is to manage and apply the Trust Fund for the benefit of customers of failed tour operators. Each year it produces its report and financial accounts.
The Air Travel Trust Fund (“ATTF”) is the primary source of funding when an ATOL holder fails. Monies from the ATTF are used to meet refund and repatriation costs arising from a failure. The Fund is administered on behalf of the Air Travel Trust (“ATT”) by the Consumer Protection Group (“CPG”) of the Civil Aviation Authority.
The Fund was established in the 1970’s by way of a levy on tour operators’ holidays. The levy ceased in 1978, after which the Fund’s only income came from investments while it remained in surplus. Following a number of large calls during the early 1990s the Fund had been in deficit since 1996. As at 31 March 2014 the ATT fund had a surplus of £54.7 million.
The ATTF is principally funded by ATOL Protection Contributions (APC). The Civil Aviation (Contributions to the Air Travel Trust) Regulations 2007 enable the ATT to collect APCs from ATOL Holders for each person who books air travel covered by an ATOL. An insurance policy and a credit facility have been arranged to provide additional liquidity. In some failures the ATTF may also receive recoveries, such as bond monies.
The Air Travel Trust (ATT) has published its Financial Statements for the year ended 31 March 2014, reporting a surplus of £54.7 million.