The Civil Aviation Authority ('CAA')1 must refuse to grant an ATOL2 if the CAA is not satisfied that the applicant is a fit person to make available flight accommodation3. The CAA may refuse to grant an ATOL or a variation to an ATOL if the CAA is not satisfied:
(1) that the applicant is competent to make available flight accommodation4;
(2) that the resources of the applicant and the financial arrangements made by the applicant are adequate for discharging the actual and potential obligations in respect of the activities in which the applicant is engaged (if any) and in
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