Travel Republic has been found not guilty of breaching ATOL regulations.
The judge at Westminster Magistrates Court this morning also dismissed arguments the Civil Aviation Authority (CAA) had brought the case as a “malicious prosecution” and said there was no finding of abuse against the CAA.
The charges brought by the CAA alleged Travel Republic and director Kane Pirie operated in such a way as to sell package holidays without either the necessary ATOL or as the agent of an ATOL holder.
The pursuit of Travel Republic was seen as a test case for the CAA in enforcing its view that virtually all holiday sales of flights plus accommodation require ATOL cover.
After this morning’s case the CAA said it has yet to decide whether to appeal against the decision.
A spokesman said: “We undertook this prosecution following advice from independent Counsel and with the aim of ensuring that holidaymakers receive the protection to which they are entitled.
“This is a very complex decision, and we will need to study the judgement fully, including considering whether an appeal is appropriate, before making a fuller statement.”