08 October 2008

Government urged to act over financial protection

The government must act to ensure scheduled airlines match the level of financial failure protection provided by tour operators, according to industry leaders at the ABTA Travel Convention.

British Airways chairman and keynote convention speaker Martin Broughton was attacked for dismissing the idea.

And it was suggested in the conventionÃ~´s Question Time session that the level of protection levy per passenger should be displayed on invoices so customers know whether they are covered or not.

White Hart Associates senior partner Chris Photi, whose company deals with licensing and bonding issues, accused the government of sitting on the fence over the issue and echoed ABTA president Justin FlemingÃ~´s description of financial protection as being in an Ã¢â¬Åâœabsolute messÃ¢â¬~.

He went on to describe BroughtonÃ~´s reaction to the suggestion as being Ã¢â¬ÅâœsmugÃ¢â¬~ and Ã¢â¬ÅâœwoefulÃ¢â¬~.

He suggested a pounds 2 levy for holidays and pound 1 for airlines, while All Leisure GroupÃ~´s Roger Allard, heavily involved in the massive repatriation process following the collapse of XL Leisure Group, suggested pound 1 for seat-only, pounds 2 for operators and pounds 3 for new entrant companies.

Thomas Cook executive director Ian Derbyshire said the whole issue of consumer protection against holiday company failure was now on the customersÃ~´ agenda following the high profile nature of the XL failure.

While holidaymakers may not understand the complexities, Ã¢â¬Åâœthey want to know if their money is protected,Ã¢â¬~ he said.

Derbyshire predicted that the issue would become a key question faced by travel agents in the January peak selling period.

Royal Caribbean Cruise Line associate vice president and general manager Jo Rzymowska called for collective action and said airlines should toe the line Ã¢â¬Åâœfor the sake of the industryÃ¢â¬~ as it was predicted that many more airlines could go to the wall.

Ã¢â¬ÅâœThomas Cook and TUI have done the most to lobby government Ã¢â¬' it shouldnÃ~´t be down to two companies to do that,Ã¢â¬~ she said.

Thomsonfly and First Choice Airways managing director Chris Browne said TUI had responded to reassure customers with national newspaper and advertising in the wake of XL going under.

Hays Travel managing director John Hays warned that that the travel industry faced Ã¢â¬Åâœdumping the problemÃ¢â¬~ on the credit card/banking industry if it does not get its act together over financial protection.

by Phil DaviesÃ~Ã~Ã~Ã~

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