The UK Civil Aviation Authority has responded to an article in the Times regarding the ongoing consultation into reform of the ATOL holiday financial protection scheme.
Michael Budge, Head of ATOL Licencing at the UK Civil Aviation Authority, said:
“The Civil Aviation Authority's role is to protect consumers and we have started a conversation with the industry about a new framework that would further reduce risk to holidaymakers.
“It has been a long standing practice that money received from customers is used by some travel businesses to fund their own operations, and not used to purchase specific parts of that customer's holiday, which can increase the risk of businesses going bust and consumers losing out financially.
“It would be wrong to suggest that we have implemented any proposals as part of our current licensing framework. Depending on the outcome of the final consultation, we will consider the appropriate timetable for implementation.”