§ John ThursoTo ask the Secretary of State for Transport (1) what advice his Department has received from the Civil Aviation Authority on whether My Travel's ATOL bond is sufficient to meet customer claims in the event of that company's financial failure; [164643]
(2) what funds the Air Travel Trust Fund would be required to provide to cover the cost of air tickets in the event of the financial failure of My Travel. [164644]
§ Mr. McNultyThe Civil Aviation Authority (CAA) provides advice to the Department on a range of issues connected with the operation of the ATOL scheme.
In the event of insolvency of any ATOL holder, the bond would be used to cover the costs of repatriation of customers abroad at the time of the failure and to reimburse those who have paid for their holiday or air ticket but yet to travel.
Due to the seasonal nature of the package travel industry, travel organiser liability varies throughout the year. The level of bond that ATOL holders establish with the CAA is based on their projected licensable 1576W turnover but if in the event of insolvency the bond proves to be insufficient, monies from the Air Travel Trust Fund would be used to make up the difference.