p24 comment nov7 4/11/08 15:25 Page 24
ttglive.com
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Derek Jones former Tui distribution director
“Strict financial regulations
should not be allowed to stifle
entrepreneurial spirit in the
name of customer protection”
I
t’s hard to disagree with the broad thrust XL failed because the demand for their product
of Mike Greenacre’s open letter: that as an didn’t exist at the prices they needed to charge,
industry we have failed to win government then there is no space for a start-up airline to
support for a sector-wide comprehensive move into and no amount of trade support will
financial protection scheme (TTG October 24). deliver success. If, on the other hand, demand
But his understandable frustration arising does exist, is it not reasonable to suppose that
from this failure should not be allowed to stifle the big players will service the routes and
the entrepreneurial spirit that has long been provide seat allocations to smaller operators?
the hallmark of the travel industry. This might be secondary to their core business
In the absence of appropriate external of providing lift for their inhouse tour operators,
regulation and consumer protection, any but they would be unlikely to turn down the
responsible customer facing business should opportunity to de-risk their flying programme.
ensure that its products are fit for purpose, The soaring price of oil undoubtedly created
that its suppliers are financially sound and a situation, in the short term at least, where
that its customers’ monies are safe. the price-sensitive, budget end of the market
These precautions should apply to all was being squeezed out of existence. But with
suppliers, old and new. The risks may oil prices back at a more realistic level, and
indeed be greater with a new start-up continuing to fall, expect the capacity void to
airline, but we should remember that be filled very shortly by the next entrepreneur
the travel industry landscape is in line to have a crack.
littered with long-established I’m not suggesting that every start-up should
businesses that have failed. automatically receive the undiluted support of
Hard on the heels of every the trade, but neither should they be boycotted
major collapse has been an to protect industry credibility. Every supplier
entrepreneur waiting in the should be assessed on their own merits.
wings to pick over the pieces. Which brings me back to Mike’s letter.
The most famous example With strong and effective lobbying we
was, in fact, on Mike’s should seek to ensure that all airlines and
doorstep when Airtours operators, both old and new, are subject
stepped into the void left to stricter financial regulation and that
by ILG and rapidly grew to our customers’ hard-earned cash is
briefly become the biggest properly protected. It would be a
kid on the block – aided in no travesty if, with good intentions, we
small part by the support of stifle the entrepreneurial spirit of this
local independent agents. industry in the name of customer protection.
Perhaps the difference then was the viability
of the market. If, as Dermot Blastland argues, Derek Jones former Tui distribution director
24 07.11.2008
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