HL Deb 21 July 1987 vol 488 cc1375-6WA
Lord Graham of Edmonton

asked Her Majesty's Government:

Whether they are satisfied that the package-holiday customers of the tour operators Biggles which has collapsed recently leaving thousands of holidaymakers stranded were fully protected by the Air Travel Organisers Licence (ATOL) 1893.

Whether they are satisfied with the monitoring procedures employed by the CAA and ABTA to ensure that the total of seats authorised to be sold under ATOL licence is not exceeded, and whether steps can be urgently taken to secure compliance, in order to assist holidaymakers who book through tour operators who fall victim to a failure.

Whether they will examine the circumstances in which the CAA are reported to have claimed to have no knowledge of the practice of "umbrellaing" by the collapsed tour operator Biggles, in the light of the responsibility of the CAA to ensure that its rules concerning ATOL licences are complied with.

The Parliamentary Under-Secretary of State, Department of Transport (Lord Brabazon of Tara)

My right honourable friend the Secretary of State for Transport and I recently discussed the question of protection for package holidaymakers with the chairman of the Civil Aviation Authority. We are satisfied that the existing arrangements are working well. British holidaymakers enjoy a very high level of protection against the financial collapse of an air tour operator, although some collapses are inevitable in a highly competitive market. Those holidaymakers affected by the collapse of Biggles will have been fully protected.

All air travel operators require a licence (ATOL) from the CAA. This stipulates the maximum number of holidays that can be sold. The CAA monitors the progress of individual operators, and can vary or revoke a licence if required. If the number of holidays sold should be exceeded, passengers would still be protected by the existing arrangements.

The CAA recognises the problems which can be caused by "umbrella-ing" or the use of an operator's ATOL by an unlicensed agent, and it is to introduce new standard terms for the ATOL which will clarify the customer's contractual position when booking through an agent. It is aware of four such agency agreements with Biggles, and customers who booked with these agents under Biggles ATOL will be protected.