How is the ATOL scheme paid for?
How is the ATOL scheme paid for?
It is able to provide assistance by requiring ATOL holders to pay a fee of £2.50 for each traveller, which is held in a fund managed by the Air Travel Trust.
This fund is used to refund, repatriate or reimburse you for the cost of repaying for affected parts of your trip.
This money creates a fund that will support you in minimising disruption to your trip in the event of an ATOL holder failure or if you are no longer able to travel, provide a full refund of what has been paid so far.
The AIR TRAVEL TRUST
The Air Travel Trust Fund (“ATT”) is the primary source of funding when an ATOL holder fails. Monies from the ATT are used to meet refund and repatriation costs arising from a failure.
The Fund is administered on behalf of the ATT Trustees by the Consumer and Markets Group of the Civil Aviation Authority.
The ATT is principally funded by ATOL Protection Contributions (usually known as APCs). It is a legal requirement for ATOL licence holders to pay APCs to the ATT for each person who books air travel covered by the ATOL financial protection scheme.