Proposal to amend ATOL Standard Term 5

ATOL Standard Term 5 - Business systems management

System Requirements

AST5.1
The ATOL holder must maintain electronic business systems that meet the following requirements:

a) Records must be managed so that a copy is available at all times (e.g. a backup is kept off-site);

b) The business system records may be kept anywhere but should be able to be made available to the CAA at the ATOL holder’s principal place of business in the UK within 3 working days;

c) The business systems must distinguish between licensable and non licensable sales, Public Sales of Flight-Only, Single-contract Packages and Multi-contract Packages and ATOL-ATOL transactions;

d) The business systems must produce ATOL Certificates and, where applicable, Confirmations as required by ATOL Regulation 17 and ATOL Standard Term 1;

e) The business systems must record and maintain the date of booking and departure for each passenger booked on a licensable transaction, the gross invoice value in respect of the booking, the booking reference, the origin and destination of each flight booked and the elements included in the booking. The business systems must also record the number of seats (whether Flight Only or combined with a package) sold as ATOL to ATOL transactions to other ATOL holders (other than to those in the ATOL holder’s group), the date of the sale and the date of departure;

f) The business systems must maintain a separate APC accounting record detailing the number of passengers who have booked licensable Single contract Packages, Multi-contract Packages or Flight-Only and the amounts of APC paid to the CAA or due to the CAA in respect of those passengers booked to travel;

g) The business systems must allow the ATOL holder to monitor and consequently report its licensable bookings and departures, both in terms of passenger numbers and associated gross invoice value, against its licence limits on a regular basis, indicating where a variation is required; and

h) The business systems must:
i. record the Unique Reference Numbers of all ATOL Certificates supplied by the ATOL holder, its agents and (where the ATOL holder is an Accredited Body) its AB members;
ii. identify individual parts of the trip and their booking reference; and
iii. link (i) with (ii) where applicable.

i) The business systems of Standard ATOL holders with an ATOL limit equal to or in excess of £20 million, must record and maintain the booking data items set out in CAP xx in the specified format.

AST5.2
Within 3 working days of the CAA requiring the ATOL holder to do so, the ATOL holder must make the business systems of the ATOL holder and the ATOL holder’s group available for inspection by the CAA, and/or any third party identified by the CAA, at the premises of the ATOL holder or the ATOL holder’s group, and ensure that staff assist the CAA and/or any third ORS3 Chapter 1: The Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012 (as amended) May 2022 Page 60 party identified by the CAA to access and interrogate information from its systems. Once the third party has signed a confidentiality agreement in the form requested by the CAA, which may be published by the CAA from time to time, the ATOL holder must:

a) make its and/or the ATOL holder’s group’s business systems available to the third party; and

b) meet all reasonable expenses incurred by the CAA in instructing the third party to carry out the inspection.

In addition, Standard ATOL holders with an ATOL limit equal to or in excess of £20 million must send to the CAA the information specified in AST5.1(i) within 3 working days of the CAA requiring the ATOL holder to do so.