NOTICES

CAA Requirements for Brokers without ATOLs

The UK Civil Aviation Authority ATOL Policy & Regulations 2010/01 include the following excerpts;

ATOL REGULATIONS – BROKERS SUPPLYING AIR TRAVEL

4.2 Sole Use Charter Exemption: Class Exemption Number 5 allows brokers to enter into contracts to sell whole plane capacity to customers without the brokers having to hold an ATOL. The buyers must be corporate firms or individuals not engaged in the travel industry themselves, they must buy capacity in whole aircraft units, and they must not resell any seats.

5. Information to be provided to Customers

5.1 The ATOL Regulations require that anyone and selling air travel must disclose to the customer the capacity in which he is acting, and if you are covered by one of the above Exemptions it will be important for you to advise your customers that you are exempted and that therefore they are not protected by the ATOL scheme. All contracts and invoices should include either the following words or an alternative message to the same effect that has been approved by the CAA:

“Air travel sales in the UK must normally be covered by an Air Travel Organiser’s Licence (ATOL) unless the sale is exempt. This transaction is exempt from this requirement and therefore you will not be protected by the ATOL scheme in the event of our insolvency.”

5.2 You should also include an indication of your capacity, in a form such as “ATOL Exempt”, in any promotional material.

5.3 Additionally, the contract should specify that the purchaser cannot offer the seats for sale to a third party.

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BACA has asked the CAA Consumer Protection Group for clarification and confirmation of these points, and received the following response.

“I can confirm that brokers are obliged to include in any contractual paperwork issued to passengers a statement to the effect that the broker is exempt from holding an ATOL, and the passenger is therefore not protected by the ATOL scheme, and this is a legal and mandatory requirement.”

Since BACA brokers endeavour to display the highest standards and careful attention to legislative requirements, it is recommended that all passenger charter brokers give serious consideration to these points.