Julian Bray writes: Just to clarify my understanding is the Civil Aviation Authority (CAA) has granted Monarch Airlines, a 12 day extension to its existing ATOL licences. So has not granted a new full ATOL licence. So in effect this is just a (welcome) stay-of-execution, if for any reason the additional funding expected fails to materialise and operations cease.
The travel agency lobby group ABTA play little or no part in this CAA driven process, and would not be able to refund from their own resources
The extended temporary licence will now expire at 23:59hrs on 12 October 2016.
The CAA say they were able to do this by requiring the shareholder to provide 'additional short-term funding' and as such qualifying customers' money over the next 12 days will be protected by ATOL.
However the ATOL repatriation arrangements ONLY apply to inclusive tour arrangements, i.e. Air ticket combined with hotel accommodation, ATOL repatriation does not apply to ad-hoc seat only contracts or consolidation deals brokered with the airline and/or other agents.
Simply, it is still possible if the airline folds, planes are seized on the ground by creditors or airports against unpaid landing fees, fuel bills etc then CAA operated ATOL repatriation will not normally be available for all passengers. Just those who meet the ATOL requirement, but those denied ATOL protection, will have a fall back position, as they can take up any claim with their own credit card company. If they have used a credit card to cover at least £100 of the overall larger paid invoice from Monarch should it cease trading.
Monarch now has 12 days to satisfy the CAA that the group is able to meet the requirements for a full ATOL licence.
Monarch will therefore remain ATOL licensed until this extension expires.
The CAA always advises consumers to ensure they book ATOL-protected air holidays and consumers who choose to book an ATOL-protected flight or holiday with the company during this time will continue to be protected by the ATOL scheme.
During this period of extension, the CAA says it will continue to monitor the company.
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