Travel businesses that are due to renew their ATOL this month and have not yet applied are being urged to submit their renewal application to avoid a delay to licence terms being offered.
Just over a third (36%) of the travel companies due for renewal are yet to apply to renew their ATOL.
Any travel companies concerned about their upcoming renewal should submit their application and supporting information as soon as possible so that the Civil Aviation Authority can discuss their terms of renewal and support them through the process.
In assessing an application, the Civil Aviation Authority considers the financial resources and arrangements available to all travel companies, and therefore needs to closely assess those businesses applying that need to find additional support to continue to trade, but this can only be done if those ATOL holders discuss their position openly and in a timely manner.
The Civil Aviation Authority understands the challenges the industry faces, and will continue to work closely with the industry, however the ATOL scheme exists to provide consumers’ protection and so it must make sure that it has complete and accurate financial information before considering a renewal.
Any renewal conditions placed on licences are reflective of the current licensing framework and the financial information provided. The future changes discussed in the ATOL Reform consultation have no bearing on current licensing decisions.
Commenting, Michael Budge, Head of ATOL at the UK Civil Aviation Authority, said:
“While the industry is on the road to recovery, we understand the challenges that travel companies continue to face and are working closely with them to support their licence renewals.
“Applications must be thoroughly assessed and where licence conditions are required, these must be met before the new licence can be granted. Businesses concerned about their renewal should submit their applications as soon as possible for us to work with them through any issues and avoid delays to their ability to sell package holidays.”
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