Minister to review ATOL scheme

by Gill Montia

Story link: Minister to review ATOL scheme

Travellers who book flights on the Internet could soon be better protected financially, as the Government announces a review of the Air Travel Organisers’ Licensing (ATOL) scheme, which was set up in the 1970s.

Transport Secretary Lord Adonis also wants to clarify the situation for holidaymakers who opt to “mix-and-match” carriers and accommodation, rather than buy a straight ATOL protected package from a travel agent.

The Civil Aviation Authority has come out in support, saying: “We believe it is right that anything that appears to the consumer to be a package holiday when booked is covered by ATOL and that people are clear that this is the case.”

Last month, the Consumer Commission of the European Union also launched a review of the financial protection available to travellers who book flights direct with an airline, saying it would consider whether the existing Package Travel Directive can be extended to cover independent travellers.

Meanwhile, ProtectMyHoliday.com has recently warned travellers to be cautious about Christmas holiday arrangement, as the travel industry continues to face large losses.

According to the travel failure specialist, the International Air Transport Association recently predicted that the global airline industry will make a cumulative loss of €11 billion this year, a steep increase on the €9 billion estimated in 2008.