Between April and June 2007 the Government and the Civil Aviation Authority (CAA) consulted on options for the reform of Air Travel Organisers' Licence (ATOL) bonding by package holiday companies. The aim was to reduce burdens on ATOL holders and also to replenish the Air Travel Trust Fund (ATTF) following the Civil Aviation Act 2006, allowing the Government's loan guarantee to be phased out. As a result of the consultation, Government announced in August an 'in principle' decision to introduce a pooled scheme, based on a £1 per passenger ATOL Protection Contribution (APC) paid by the tour operator, to replace the current ATOL bonding arrangements from 1 April 2008. Confirmation of the decision was subject to CAA's satisfactory progress on aspects of the scheme.

The Government are now content to confirm the decision. The Civil Aviation (Contributions to the Air Travel Trust Fund) Regulations 2007 have today been laid before Parliament which will allow the CAA to implement the APC from 1 April 2008.

There is no change in the comprehensive financial protection available to passengers. Those buying a package holiday will be entitled to a full refund if their travel organiser becomes insolvent before they travel, and assistance with returning home if they are already abroad.

http://www.theyworkforyou.com/wms/?id=2007-10-22a.2WS.2