Airline Ticket Agents

An ATOL will not be required (and there will be no ATOL protection) where a ticket is sold by an agent acting as an Airline Ticket Agent (an “ATA”) or acting as an ATA in combination with the IATA Agent exemption that the CAA proposes to issue. The use of these exemptions is subject to the following tests being met:

That the agent is dealing directly with the end user customer and issues the ticket directly to that customer as soon as the agent accepts any payment for it, and that the ticket itself enables the customer to travel without the customer having to make any further payment in respect of the ticket prior to departure.

The CAA envisages that an ATOL will not be required where a ticket is sold by:

1. An IATA accredited agent issuing an IATA member airline’s tickets under the Ticketing Authority of that airline – Such agents will be acting under the Airline Ticket Agent (ATA) provision in the ATOL Regulations as modified by the IATA agent exemption. In such circumstances no separate written agreement will be required with the airline;
2. An IATA accredited agent issuing a non-IATA member airline’s ticket under the airline’s Ticketing Authority through the IATA Bank Settlement Plan – as 1 above. The provisions of IATA agent exemption also apply to the issue of non-IATA member airline tickets if the IATA Bank Settlement Plan is used;
3. Any agent (whether or not IATA accredited) issuing an airline’s tickets under the airline’s Ticketing Authority outside the IATA Bank Settlement Plan – will be exempt as an ATA providing that the agent concerned has entered into a separate written agreement with the airline. The IATA exemption is not relevant in these circumstances;

All other sales will need to be ATOL protected. Certain sales may be able to benefit from the proposed corporate exemption. 

The proposed IATA exemption

The proposed corporate exemption