delete Revocations
The Civil Aviation (Air Travel Organisers' Licensing) Regulations 1995 establish the ATOL scheme, requiring anyone making available flight accommodation in the UK to hold a licence from the Civil Aviation Authority, act as agent for a licence holder, be exempted, or supply a valid ticket before payment. The regulations grant the CAA extensive powers to grant, refuse, revoke, suspend or vary licences based on fitness, resources and financial adequacy tests. They impose disclosure requirements, document serving rules, appeals procedures to county courts/sheriff, and criminal penalties for breaches including fines up to statutory maximum on summary conviction or up to 2 years imprisonment on indictment.
This regulation imposes costly barriers to entry through licensing requirements that restrict who may sell flight accommodation, raising prices and reducing consumer choice. The 'fitness' and financial adequacy tests grant the CAA discretionary power to exclude market participants with no clear market failure justification. While proponents claim consumer protection against operator default, this goal is already achievable through private alternatives: direct airline bookings, credit card chargebacks, travel insurance, and bonding schemes. The regulations perpetuate a regulatory monopoly that benefits incumbents by raising costs for potential competitors. The extensive compliance burden, criminal penalties, and administrative discretion represent significant government intervention in a competitive market that can self-organize consumer protection more efficiently.