p2-3 sep19 17/9/08 22:33 Page 2
We’ve had the major
failure, now let’s see
news
government action
IT IS no exaggeration to say that the collapse of the
XL Leisure Group will be – and must be – a defining
moment for the industry.
It MUST signal the end, once and for all, to the
confusion that exists over financial protection of air
travel and bring clarity for consumers and the trade.
It’s often been said that only a major failure will
force the government to take the issue seriously.
this week
Well, we’ve had it. It’s time to see some action.
No doubt scheduled carriers will bleat about the
cost of a levy for all flights while at the same time
bending the rules to become operators themselves.
It’s time the government saw through this attempt
to gain an unfair commercial advantage.
The new Atol scheme has simplified things but
what constitutes a package remains open to inter-
pretation, leaving many agents unaware of the risks.
‘Biggest airlift in history’
Now, agents who were cajoled into getting an Atol The CAA’s head of licensing and crisis management, Geoff Elsbury, stands at
are liable to pay for their customers’ replacement the “wailing wall”, a whiteboard at the authority’s offices in London on which
flights. Those who did not comply will have their the successful repatriation of 85,000 XL customers was planned. Elsbury, who
clients’ claims met by the CAA. Or will they? I doubt has worked for the CAA for 36 years, said: “We could not have done this
it will be that cut and dried. without the help of the industry.” p7
And furthermore, I’ve spoken to at least three big
retailers which toed the line and are confident of XL collapse. decision to leave Triton makes it,
mounting a successful legal challenge to the CAA if Protection call p5 and the indie sector as a whole,
it doesn’t penalise those who didn’t. Atol-bonded agents facing losses vulnerable to commission cuts
It seems a landmark court case as a result of this have demanded loopholes in
whole fiasco is now inevitable. If the CAA thought the consumer protection be closed City & finance.
XL repatriation exercise it co-ordinated this week How to stay afloat p16
was complex and awkward, it ain’t seen nothing yet. XL collapse. Former MyTravel accountant
Many in the industry would argue they and the Jet2 set for £30m profit p6 Barry Knight warned travel firms
government have only themselves to blame. And Jet2 has contrasted its “bumper to make sure their forecasting is
many more are critical of the CAA’s failure to year” with that of failed rival XL, spot on if they are to avoid the
spot, or act upon, XL’s instability sooner. saying its success was down to its same fate as XL
But from adversity comes opportunity, mid and short-haul flying strategy
and, after the bad press that booking Aviation.
holiday components on the web has had XL collapse. Zoom recriminations p17
this last week, fully bonded tour operators Save Travel City Direct p7 Accusations fly as former Zoom
and full service travel agents ought to be A former employee of XL’s Travel Airlines boss accuses insurer IPP
– and are – making hay. City Direct is seeking investors of undermining its rescue bid
It’s also no surprise to learn the who might be interested in
CAA has already taken calls from saving his “beloved” company Interview.
companies wanting to quickly Lawrence Hunt p18
bring another 1.4 million more XL collapse. Former Silverjet chief executive
seats under Atol. Timely convention p10 Hunt charts the rise and fall of
Fear may drive up Atol compliance The demise of XL has focused his all-business-class airline
but it just papers over the cavernous minds on how next month’s Travel
cracks in travel’s disastrously Convention in Gran Canaria could SECTORS.
confusing consumer protection. not have come at a better time Cruise p26
Operators p32
Triton. Hotels & resorts p36
Lucy Huxley Editor Advantage alone p12 Air p40
Advantage dismissed claims its Business travel p44
2 19.09.2008
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