ATOL Bonds

Air Travel Organisers’ Licence

The Civil Aviation Authority (CAA) is the UK’s specialist aviation regulator. It manages the UK’s principal travel protection scheme, the Air Travel Organiser’s Licensing (ATOL) scheme.

ATOL bonds are required by law when a firm sells:

  • Flight based packages
  • Charter flights
  • Scheduled flights where an airline ticket is not issued straight away

In accordance with the ATOL license, the Civil Aviation Authority (CAA) will require an ATOL bond for new applicants or if the licence has been held for under four years.

Standard ATOL Bonds:

The CAA’s minimum ATOL bond requirements for new standard licence holders is £50,000.

Small Business ATOL Bonds:

Small Business ATOLs (SBA) are for licence holders who intend to sell less than 500 passengers and £1million licensable revenue per annum an ATOL bond of £50,000 is required in the first year; with the bonding amount subsequently reducing over the course of the next three years.

ATOL bonding is used in the event that a license holder cannot meet its obligations to its customers and used initially to bring home any passengers that would otherwise be stranded abroad and to reimburse customers who have paid for a flight or holiday covered by the licence but are unable to travel. For further information about the CAA bonds, please visit their website.