27 July 2010

AITO anger at BA over ash costs

AITO has reacted angrily to British Airways' refusal to reimburse operators for looking after the airline’s passengers during the ash crisis.

The association’s director of industry affairs Noel Josephides has written to the Lords committee which is discussing airlines’ burden of ash crisis compensation this afternoon, asking that operators also be considered.

He commented: "I am saddened that BA sees fit to treat its tour operator partners in this way. AITO operators have continued loyally to book their customers on to BA flights - despite the many downsides, e.g. strike action, of so doing - and now get mud kicked in their faces yet again."

He said he believed some AITO operators would stop using the airline despite its reach.

In the letter to the committee he said: "We are concerned that your Committee should not forget about tour operators, many of which paid out large amounts of money (hundreds of thousands of pounds in some individual instances).

"When you take into account the relative size of tour operators versus the size of airlines, this is substantial in terms of its impact.

"As an example, a mid-sized tour operator paid out £100,000 to get its passengers home; its turnover is £24M and its profits around £400,000 pa."

Josephides added: "The Government runs the risk by not approving refunds that, the next time there is a similar crisis - volcanic or otherwise - both airlines and tour operators will refuse to act."

Lime Management, which handles operator bookings for BA, said last week that if an operator had made arrangements for its customers the airline had no obligation as its duty of care was directly between carrier and passenger.

by Debbie Ward