The trial of Travel Republic and its director Kane Pirie was summed up this week with Hugo Keith QC, representing Pirie, accusing the Civil Aviation Authority (CAA) of taking action which was “disproportionate” and using the case to clarify the “grey area” surrounding the ATOL licence.

Travel Republic and Pirie are accused of selling separate holiday elements in bundles which the prosecution believe amounted to little more than unlicensed package holidays. Many in the travel industry are watching the case very closely because of the far reaching implications it could have for the holiday market.

Earlier the court had heard Pirie being cross-examined about whether the product offering of Travel Republic constituted a package holiday. Pirie described the CAA as “not appear[ing] to understand what we [Travel Republic] do.”

Pirie also suggested that ABTA had given their blessing to the business model Travel Republic had used so successfully.

But Ian Croxford QC for the prosecution suggested that Travel Republic were aware that they were selling “a combination of components that made up a holiday,” and recognised the link between the different elements.

Pirie said: “Combination is your word. I see separate products at separate prices,” and that “there is a linkage between the bookings,” rather than there being a single linked arrangement.

Croxford also referred to the transcript of a conversation where a customer booking a holiday was told by a Travel Republic employee at the firm’s call centre: “We did this as separate transactions all together. We just got all the components together to make a holiday.”

Pririe said that the employee had “gone a bit freestyle” and had been “sacked,” to which Croxford countered: “But it was entirely accurate.”

“Each product is sold separately,” said Pirie. “We are not trying to dress anything up.”

Hugo Keith QC, representing Pirie told the court that the CAA was using the trial as a “test case.”

Keith said: “If this is a test case, it emphasises the disproportionate manner in which this case has been brought against Pirie. It leads me to ask why all three directors were not prosecuted. If this case had been brought properly, all three directors should have stood together.”

The verdict is expected in November 10.