The CAA is imposing new special conditions on Atol holders who are renewing their licences this spring.
Delegates attending the Elman Wall Covid-19 online webinar heard that while the CAA was renewing the majority of licences, it was also applying new conditions on these companies due to the impact of the coronavirus pandemic on their businesses.
In March, the CAA extended the deadline for Atol renewals from the end of March to April 28 following the spread of the Covid-19 virus.
John de Vial, Abta’s director of financial protection and financial services, said: “The CAA has been in a reasonably pragmatic place with licence holders.
“They are renewing the majority of licences but have been placing special conditions on holders so they have to go back to them [the CAA] later in the year.”
De Vial added that this delayed round of Atol renewals had gone “reasonably well” for Abta members.
Elman Wall director and head of audit Ian Palmer added that the conditions being imposed by the CAA on renewing Atol holders were “largely around restrictions on capacity and restrictions on how much cash needs to be retained within the business”.
“There will be a much more regular review [by the CAA] of what’s going,” said Palmer. “September renewals will be far more affected by the current situation.”
Palmer added that the CAA was mostly now focusing on the forecasts of Atol holders rather than their accounts.