CMG ATOL
Deed of Undertaking – Multiple ATOL Holders
Form CMG 3009, Issue 3, November 2019
Page 2 of 8
A. Whereas the CAA may refuse an application for an ATOL or a variation to an ATOL or
may revoke, suspend or vary an ATOL in exercise of its powers under the ATOL
Regulations, if it is not satisfied that the resources of any person to whom it grants an
ATOL and the financial arrangements made by that person are and remain adequate
for discharging its actual and potential obligations in respect of the activities in which it
is or may be expected to be engaged under an ATOL.
B. Whereas the ATT Trustees (through the agency of the CAA and pursuant to the ATT
Deed) administer a fund (known as the Air Travel Trust Fund) for the relief of any loss
in respect of any payment made by or on behalf of any Consumer to a failed ATOL
holder or to an agent of the failed ATOL holder under or with a view to entering into a
licensable transaction (as such term is defined in the ATT Deed) and for the relief of
loss and liability occasioned to Consumers of failed ATOL holders in consequence of
the failure of the ATOL holder to provide flight accommodation, living accommodation,
car hire and other facilities and tourist services which the failed ATOL holder was to
provide or arrange to provide in accordance with its obligations under or in connection
with such a licensable transaction and to make payments to fulfilment partners for
the provision of such services to such Consumers and may incur costs and
expenses in providing or procuring the provision of such flight accommodation,
living accommodation and other facilities and tourist services and relieving such
losses and liabilities.
C. Whereas the CAA has indicated that it could not be satisfied that an ATOL should be
granted to the ATOL holder or be renewed or varied as applied for by the ATOL holder
or has indicated that the ATOL held by the ATOL holder should be revoked, suspended
or varied under the ATOL Regulations unless, inter alia, the Obligor gave or continued
to give the following separate undertakings in this Deed to the ATT Trustees.
D. Whereas the ATOL holder has requested the Obligor to enter into the Deed of
Undertaking for this purpose.
Now ther
efore the Obligor hereby irrevocably undertakes to the ATT Trustees and the
parties agree as follows:-
Definitions and Interpretation
1. In this Deed the following expressions (in bold) shall have the following meanings:
1.1. Amount means the sum which the Obligor is required to pay to the ATT Trustees
under this Deed (not exceeding the Obligor’s maximum liability under this Deed) if
a Demand is served on it;
1.2. an ATOL and an ATOL holder have the same meanings as in the ATOL
Regulations;
1.3.
ATOL Regulations means the Civil Aviation (Air Travel Organisers’ Licensing)
Regulations for the time being in force under section 71 of the Civil Aviation
Act 1982 (as amended from time to time);
1.4. ATT means
the Air Travel Trust constituted by the ATT Deed;