ATIPAC terms of reference

The Air Travel Insolvency Protection Advisory Committee ("the Committee") is established by the Secretary of State for Transport to advise on the financial protection arrangements for air travellers and customers of air travel organisers.

Constitution and Terms of Reference

Establishment and Role of the Committee

1. The Air Travel Insolvency Protection Advisory Committee ("the Committee") is established by the Secretary of State for Transport to advise on the financial protection arrangements for air travellers and customers of air travel organisers.

Composition of the Committee

2. The Committee is established as an expert advisory group. The Committee comprises up to twenty members who are selected on the basis of their skills, knowledge, and experience, with a balance between members drawn from the travel industry and independent members. Industry members will be those drawn from experts working within the travel industry, in particular those with current, relevant experience in the travel agent, tour operator, third party protection arranger and airline sectors. The composition of the industry membership will be such that there is an appropriate mix of industry members that reflect the broad and changing nature of the travel industry.

3. The remaining members are independent (“independent members”) in that, although they might be acting in an advisory capacity to companies in the sector (for example in the areas of finance, insolvency, management consultancy, etc), they are not currently employed directly by a travel industry company. The independent members will ideally include individuals with current, relevant experience in consumer protection, for example consumer policy, consumer advocacy, etc. The Chair of the Committee is always an independent member.

Observers 

4. In addition to the membership of the Committee, representatives from a number of organisations may attend and contribute at Committee meetings as observers. Observers do not have the status of Committee members under these Terms of Reference.

5. Members of the CAA and the Trustees of the Air Travel Trust (“the Trustees”) may sit on the Committee as observers. Department for Transport (“DfT”) officials, and any other departmental officials invited by DfT officials, may sit on the Committee as observers. Members of Trading Standards and Citizens Advice may also sit on the Committee as observers. Members of other regulators or non-departmental public bodies (NDPBs) or similar bodies may also be invited by the Chair of the Committee to participate in meetings, as appropriate.

6. The Chief Executive of the CAA, in consultation with the Chair of the Committee, will identify organisations to nominate observers to sit on the Committee.

Appointments to the Committee 

7. Appointment of members will be made by the Chief Executive of the CAA in consultation with the Chair of the Committee. Appointments will ordinarily be for a term of up to four years which may be extended for a maximum of up to two years. However, exceptional circumstances will permit different appointment arrangements to be made. Members may resign at any time without the need for notice to be given.

8. If the Chief Executive of the CAA is satisfied that a member has been absent from meetings of the Committee for more than three consecutive meetings or is satisfied that a member is otherwise unable or unfit to discharge the functions of a member of the Committee the membership may be declared vacant.There will be up to ten independent members of whom one will be Chair. These members will include at least three consumer representatives and three representing consumer-focused organisations.

Meetings of the Committee

9. In consultation with the Committee, the Chair shall determine the Committee’s procedures for and frequency of meetings, including any requirement for a quorum

10. The Chair may set up working groups to consider and report on specific issues. Although such
groups will normally be made up of Committee members the Chair may invite others with particular
expertise to participate at their discretion.

Duties of Committee

11. The Committee shall keep under review and from time to time advise the CAA, the Trustees, and the Secretary of State for Transport on the arrangements for the financial protection of air travellers and customers of air travel organisers. If the Committee considers its advice or Annual Report ought to be shared with any other Secretaries of State, or if any other action is considered necessary to take, it will notify the Secretary of State for Transport accordingly, who will then take any actions that they see fit.

12. In particular it shall:

• advise the Trustees, the CAA, and the Secretary of State for Transport on policies they
  should pursue to protect consumers;
• advise the CAA and the Trustees on payment policy and the use of their discretion when
  making payments from the Air Travel Trust (The Payment Policy);
• advise the CAA how they can promote awareness of Air Travel Organiser’s Licence
  (“ATOL”) protection to consumers and consumer expectations of protection;
• advise on agreements between the Trustees, the CAA and third parties such as credit card
  companies where there are no commercial sensitivity issues;
• advise on current market conditions, emerging market trends and, where appropriate, their
  potential impact on consumers and the financial protection arrangements; and
• advise the CAA and the Trustees on the financial viability of the Air Travel Trust.advise the Trustees, the CAA and the Secretary of State on policies they should pursue to protect consumers;

13. By the end of June each year, the Committee will produce an Annual Report for the previous financial year on its activities which is submitted to the CAA, the Trustees, and the Secretary of State for Transport.

Administrative Arrangements

14. Independent Committee members will be remunerated at an appropriate daily rate to be determined at the time of appointment. Reasonable out of pocket expenses1 directly incurred by members of the Committee in attending meetings shall be reimbursed by the CAA.

15. The CAA shall be responsible for ensuring administrative support to the Committee.

Issued by:

The Department of the Environment, Transport and the Regions April 2000
Amended by the Department for Transport July 2006
Amended by the Department for Transport September 2014
Amended by the Department for Transport December 2023