Tougher Civil Aviation Authority rules on tour operators
As part of wide-ranging measures to avoid more failures in the travel industry, the Civil Aviation Authority (CAA)
is forcing holiday companies to appoint compliance managers
to their boards.
The Civil Aviation Authority's new regulations
will also include tougher rules on the accuracy of information provided to the regulator by operators like TUI and Thomas Cook.Nick Harris of Simpson Millar LLP
said the move is a crucial element in the CAA's campaign to save more holiday firms from insolvency
"The Civil Aviation Authority is looking to avoid further high-profile failures in the wake of Goldtrail and XL Leisure," said Nick. "Both of these companies left thousands of holidaymakers stranded abroad
after they went into administration."
Under its ATOL scheme
, the CAA had to pay millions of pounds to repatriate the firms' customers
The role of compliance managers will be to ensure that companies do not deliberately avoid controls on their activities and that they fully understand their regulatory obligations. Around 200 travel firms will be affected.
The Department for Transport (DoT) is working with the CAA on widening the ATOL scheme to include "flight plus" holidays
. Currently only package holidays which combine all main elements – flight, hotel and transfers – are covered.
Insurance requirements will be broadened by the DoT in some circumstances to cover flights, hotels or car-hire booked from the same website.