ATOL licences expiring

30 September sees the end of Licence year for the majority of travel companies.

Astonishingly, as the 2022-23 licences are granted the financial conditions remain vague and Client funds can still be legally embezzled. The CAA launched an overdue review of ATOL in April 2021. The main focus being the safeguarding of client money. The CAA’s website still quotes the following timeline:

‘The consultation will close on 30 July 2021 and the UK Civil Aviation Authority will then consider recommendations ahead of launching a second consultation making specific proposals in early 2022’

This work has stalled, the specific proposals have not transpired and ATOL holders are still permitted to misappropriate client money.

Specifically: A travel company is permitted, by the CAA, to take money from a Client on the Monday, for a holiday in 6 months time and then spend that money on the Tuesday to keep the lights on, or spend it in any other way they choose. The very costly lessons of Thomas Cook Mark1 unheeded.

How much longer before the CAA insist on the simple rule that clients money can only be spent on their holiday?

Will a new broom at the DFT sweep them out of their lethargy?

It was always a matter for the FCA to administer in the first place, the CAA having no financial competence. As they have demonstrated: They cannot even keep up with the Air Travel Trust accounts, which are consistently overdue.