Skip page header and navigation

ATOL reform

Details

On 9 February 2017, the Department for Transport (DfT) issued the UK Government’s response to the recent ATOL consultation. This followed a slightly shorter than usual consultation from 28 October to 24 November 2016 and a workshop to discuss future changes to the UK’s consumer protection regime for flight-inclusive packages, flight-plus and certain flight sales. The DfT noted that the majority of respondents are in favour of aligning ATOL with the more expansive definition of package under the new Package Travel Directive 2015 (new PTD) and for shifting the focus of ATOL protection from ‘place of sale’ to ‘place of establishment’. This will hopefully mean that ATOL becomes recognised throughout the EEA as an appropriate financial protection regime, compliant with the New PTD, for the benefit of consumers in the UK and across the single market. It is also hoped that this will promote cross-border trade and perhaps encourage businesses to establish themselves in the UK and use ATOL to address their compliance requirements for the sale of package holidays.

Elsewhere, respondents showed a preference for including linked travel arrangements (LTAs) within ATOL, but views about how to achieve this varied considerably. Several respondents raised concerns about diluting the ATOL brand with a ‘lighter’ version of it for LTAs, increasing regulatory and administrative burdens on business as well as potentially causing confusion for UK consumers etc. Similarly, there were differing views on whether to retain the Flight-Plus and agent-for-consumer models or bring them into line with ATOL flight-inclusive packages in the longer term. This consultation will assist the DfT when it publishes its post-implementation report on the ATOL Regulations 2012 before 30 April this year.

Next up will be the long-awaited consultation on the new PTD, its implementation and changes to the existing UK Package Travel Regulations. The Government will launch this consultation shortly.

We look forward to reviewing it and to help our clients navigate their way through these tumultuous changes in our regulatory landscape.

For aerospace legal expertise, we are known as being among the very best in the field. Our aviation law specialists have in-depth knowledge and experience, representing airlines, manufacturers, airports, service providers and their insurers as well as business jet and light aircraft owners.

If you want high-quality advice across a broad range of insurance and liability, commercial and contractual related matters, including sale and purchase, finance and charter, talk to us. We understand the problems you face and can support you in both contentious and non-contentious legal issues.