XL fallout

The CAA says that XL was able to retain it's licence (ATOL) simply because they (the CAA) did not have the resources to investigate XL's financial statements thoroughly. XL had a £42m bond under the terms of it's licence, but it's collapse will cost more and throw the Air Travel Trust Fund deeper into the red. The fund now stands less chance of being replenished any time soon, running at a deficit of £20m with a further £20m in addition to the bond needed to put right the problems caused by the collapse of XL.
The CAA will not be making a claim against it's insurer AIG which itself has only recently been pulled back from the brink of collapse.
Naturally agents who apply for new and renewal licences will be bearing the brunt of the costs. Travellers who bought their travel packages from non-ATOL agents rather then directly contracted to XL could well have their claims referred back to those individual (unlicenced) agents, no doubt this will come of something of a shock!
This should ring alarm bells about buying from agents that may not have adequate cover themselves, and encourage travellers to make certain that they are covered against all eventualities on their individual travel insurance.