Clear
0 Selected+
Filters
Air
Luxury
Regulation
Operators
Agencies
City and finance
Destinations
Skills
Cruise
Technology

Hello! You are viewing your 1 free guest article this week


Join now for free, immediate and unlimited access to our award-winning online content. Find out more...

Join us
Already a member? Log in here

News

17 May 2018

BY Sophie Griffiths

Share
TRFBLI

New CAA chief leaves door open for future APC reduction

The incoming chief executive of the CAA has admitted “there may come a point” where the government decides to reduce the Atol Protection Contribution (APC) – but it’s unlikely to be in the near future, writes Sophie Griffiths.

Richard Moriarty.jpg
Sharelines

“There’s no discussion with government at the moment about reducing the APC. Most of the conversations we’re having with the government are about the Airline Insolvency Review – that’s very much where our focus is."

Richard Moriarty, who is due to take up the role in June, told delegates at the Barclays Travel Forum last week that the Air Travel Trust Fund (ATTF), which now totals £145 million, was “a modest sum”.


Asked about reducing the APC, which is currently set at £2.50 and is paid by customers taking Atol-protected holidays, Moriarty replied: “There’s no discussion with government at the moment about reducing the APC. Most of the conversations we’re having with the government are about the Airline Insolvency Review – that’s very much where our focus is.


“My expectation is that the government will wish to see a situation where the ATTF can cover pretty much all of the risk of a tour operator failure so tax payers aren’t on the hook. At what point that is, is probably not where we are at the moment – £145 million. But there may come a point where the fund gets to a scale where [reducing it] becomes the right thing to do.”


Questioned as to what total the fund would need to reach for this to happen, Moriarty admitted: “I don’t know off the top of my head. But I know that we’re not at the point yet where all those risks are covered for us to say to the government to reduce the APC.”


Elsewhere, Moriarty said the CAA was continuing its investigation into allocated seating policies on airlines, and that it may look to publish a list of the worst offenders.

Add New Comment
Please sign in to comment.
Show me more
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ
Scroll To Top