The Air Travel Trust Fund has £137m of cash reserves despite the collapse of 15 ATOL holders last year, which cost it £2.4m.
The Air Travel Trust (ATT) raised around £37m from the £2.50 per person ATOL Protection Contribution for the year to the end of March 2022.
This was up from £20m in the previous 12 months, but it paid out almost £9m less as there were fewer tour operator failures.
In the 12 months to the end of March 2021, at the height of the pandemic, 34 companies collapsed, leading to an £11.4m call on the fund.
Of the 15 companies that collapsed last year, the biggest, Teletext parent Truly Travel, didn’t cost the Air Travel Trust Fund a penny because its 6,111 customers were protected by Travel Trust Association and not the responsibility of the ATT.
The biggest pay-out by the ATT was to 1,745 customers of diving specialist Blue 02, which cost an estimated £754,000.
In its financial statement, the ATT said: “At the date of signing, the Trust’s resources primarily include £139m of cash reserves, £75m of commercial borrowing facilities and, to the extent that those resources may be insufficient to meet the costs of a large or multiple failures, the Trustees’ expectation is that HMG [the Government] will provide additional financial support to the ATT as necessary.
“That expectation is based on the support provided by HMG to the ATT over many years and recent written assurance provided by the Secretary of State for Transport in relation to the pandemic.
“In addition, the Trustees have considered the criteria set out in their Payment Policy, the Trustees’ view as to their obligations under the Trust Deed and the Trustees’ view as to how the UK Government is expected to fulfil its obligations in relation to package travel.”
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The Air Travel Trust (ATT) raised around £37m from the £2.50 per person ATOL Protection Contribution for the year to the end of March 2022.
This was up from £20m in the previous 12 months, but it paid out almost £9m less as there were fewer tour operator failures.
In the 12 months to the end of March 2021, at the height of the pandemic, 34 companies collapsed, leading to an £11.4m call on the fund.
Of the 15 companies that collapsed last year, the biggest, Teletext parent Truly Travel, didn’t cost the Air Travel Trust Fund a penny because its 6,111 customers were protected by Travel Trust Association and not the responsibility of the ATT.
The biggest pay-out by the ATT was to 1,745 customers of diving specialist Blue 02, which cost an estimated £754,000.
In its financial statement, the ATT said: “At the date of signing, the Trust’s resources primarily include £139m of cash reserves, £75m of commercial borrowing facilities and, to the extent that those resources may be insufficient to meet the costs of a large or multiple failures, the Trustees’ expectation is that HMG [the Government] will provide additional financial support to the ATT as necessary.
“That expectation is based on the support provided by HMG to the ATT over many years and recent written assurance provided by the Secretary of State for Transport in relation to the pandemic.
“In addition, the Trustees have considered the criteria set out in their Payment Policy, the Trustees’ view as to their obligations under the Trust Deed and the Trustees’ view as to how the UK Government is expected to fulfil its obligations in relation to package travel.”
The post Air Travel Trust reveals it has £137m in the pot appeared first on Travel Gossip.
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