An ATOL to ATOL trade sales licence is very restrictive, only allowing the holder to sell to other ATOL holders for re-sale under their licences
You can apply for an ATOL to ATOL Trade sales licence if:
- the applicant company is a subsidiary of an existing ATOL holder, set up to purchase flights from airlines and then sell them to the Parent to package and sell to the public. This structure would minimise taxation under the Tour Operators Margin Scheme (TOMS). Applicants considering this should consult their accountant or tax office; or
- the applicant company is an independent business which intends to sell only to other ATOL holders.
General financial/fitness requirements
If the applicant is part of a group, we will look at the finances on a group basis and require audited group consolidated accounts. A parent guarantee in support of the ATOL to ATOL Trade sales licence holder would be required, together with a group bond if the parent was required to provide a bond.
If the applicant is not part of a group, it will be subject to the usual financial test and a certified balance sheet will be required.
Legally, the CAA must be satisfied that the people who own/control the business are fit to hold a licence. It will request details of the history of the people in a position of influence within an applicant and consider if they are likely to operate in a proper manner if granted a licence. If its preliminary view is that the people are unfit to hold a licence, it will issue a proposal to refuse the licence application, setting out the reasons for reaching the view and giving the applicant an opportunity to put its case to us at a formal meeting.
The CAA has issued a policy note which sets out the personal fitness criteria.