Licensing

Air travel organiser's licence - broker finding flight accommodation for travel organisers but not providing or disposing of flight accommodation - licence not requiredR (Jet Services Ltd) v Civil Aviation Authority: CA (Lord Phillips of Worth Matravers MR, Lords Justice Peter Gibson and Latham):1 May 2001A company acted on behalf of buyers, who were travel organisers and holders of air travel organiser's licences (ATOLs), to find flight accommodation from the sellers, who were aircraft operators.

The contract was concluded directly between the buyers and sellers.

The buyers paid the purchase price and commission to the company, which segregated purchase moneys from its own funds.

The Civil Aviation Authority informed the company that it required an ATOL in order to carry on business because it made available flight accommodation within regulation 3 of the Civil Aviation (Air Travel Organisers' Licensing) Regulations 1995 as amended.

Mr Justice Longmore granted the company judicial review of that decision on the ground that it was not making available flight accommodation.

The authority appealed.JR McManus QC and David Wolfe (instructed by legal adviser, Civil Aviation Authority) for the authority.

Michael Crane QC and Matthew Reeve (instructed by Bowen Muscatt) for the company.Held, dismissing the appeal, that the 1995 regulations chose to provide protection for passengers by requiring the licensing of those who made available flight accommodation, not those who handled money paid for flight accommodation; that the company assisted their principals to make flight accommodation available to end users and acted as a conduit through which the principals paid the sellers, but had no ability to provide or right to dispose of flight accommodation; and that, accordingly, since the company did not make flight accommodation available it did not require an ATOL.