Air Travel Organiser’s Licensing – ATOL

ATOL – ‘Air Travel Organisers Licensing’ exists to protect the public from losing money or being stranded abroad due to the failure of air travel firms. It was first introduces in 1972 and gives comprehensive consumer protection to 28 million people in the UK who buy charter flight only or a package holiday by air each year.

 ATOL is a statutory scheme based on a legal requirement for licensing and is managed by the Civil Aviation Authority (CAA). ATOL is also the only protection scheme for flights and air holidays sold by tour operators in the UK.

How can you tell if a flight or air holiday is ATOL protected?

What is ATOL and what does it do?

ATOL is a protection scheme for flights and air holidays, managed by the Civil Aviation Authority (CAA). Most firms who sell air travel in the UK are required by law to holds a license. ATOL protects the consumer from losing money or being stranded abroad when a tour operator goes out of business. All licensed operators have to lodge bonds with the CAA so that in the event of financial failure the CAA can give refunds to customer whose travel plans are cancelled and arrange for holidaymakers abroad to finish their holidays and fly home.

ATOL protection is included in the cost of a holiday booked with an ATOL holder, however if there is any shortfall where an operator’s ATOL bond doesn’t cover the total cost of the failure, there is a government backed fund – the Air Travel Trust that steps in to cover the difference.

The rule is ‘Ticket or ATOL’

If a customer pays any money, even a deposit to a travel firm in the UK for a flight or a package holiday by air, the sale has to be ATOL protected unless they receive a scheduled air ticket straight away.

A travel agent does not have to hold its own ATOL, but must book the consumer with an ATOL  bonded operator, and tell them which ATOL they are protected by, and issue them with an “ATOL Receipt”.

The exceptions to the ‘Ticket or ATOL’ rule are as follows:

• It does not apply if the customer books directly with an airline, rather tan through a travel firm. So if a ticket is purchased through British Airways direct it will not be covered. If the tickets is purchased through Kuoni Holidays (ATOL holder) it will be covered.
• If a customer books from outside the UK, they will not usually be covered.
* correct at the time of posting.

Protection from failure of the Global Travel Group.

In the event of the Global Travel Group’s insolvency, both the consumer and the supplier’s are protected by the use of a client account. The Global Travel client account is set up in the same way as a trust account. Money is held on behalf of third parties, being the customer and the suppliers, and the account is therefore not considered an asset of the company. Should the Global Travel Group fail the account is not available to creditors, liquidators or company administrators so the customers money and travel arrangements are protected.

Protection from failure of an individual Global agent.

All Monies paid to individual Global agencies are banked into the client account. At no time is the money held by the individual branch and is therefore under the control of Global Travel’s Head Office. Should an individual agency fail, the cleints money is protected as it remains in the control of Global Travel Head Office who will take over the administration of the customers booking protecting their travel arrangments.

The Civil Aviation Authority is the UK’s specialist aviation regulator. Through it’s skill and expertise it is recognised as a world leader in its field.

The Civil Aviation Authority (CAA), which is a public corporation , was established by Parliament in 1972 as an independent specialist aviation regulator and provider of air traffic services.

Following the separation of National Air Traffic Services from the CAA in 2001, the CAA is now the UK’s independent aviation regulator, with al civil aviation regulatory functions (economic regulation, airspace policy, safety regulation and consumer protection) integrated within a single specialist body.

The UK Government requires that the CAA’s costs are met entirely from the charges on those it regulates. Unlike many other countries, there is no direct Government funding of the CAA’s work.