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This week’s top stories: 1. AirFastTickets default 2. Demand lags capacity 3. Air fares ‘bound to rise’ 4. Call for child-rate APD 5. Tui cuts CO2 emissions
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AirFastTickets defaults on Iata payment of €14m debt in UK
Lee Hayhurst
The Association of Atol Companies (AAC) has issued a warning about Greek online agent AirFastTickets, which defaulted on payments to airline association Iata last week. In an update to members headed
‘AirFastTickets – be aware!’, the AAC said members had been approached by the agency to “provide assistance”. A letter from Iata to airlines using its Billing and Settlement Plan (BSP), dated June 18, stated that Iata had put the retailer ‘into default’ due to €14 million owed in the UK. The company also owes €22 million for
tickets issued in Germany and €9 million in Greece, making €45 million in total. The AAC said it was aware of
numerous customer complaints that tickets had been issued and then cancelled within 24 hours, with no refunds forthcoming. It added: “You may wish to consider the wisdom of selling seats to them. As their Atol licence is only 900 public sales, all sales will be under your Atol licence and therefore entirely at your own risk.”
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travelweekly.co.uk — 26 June 2014
Accredited Iata agents must pay on the 17th of each month. The Iata letter stated that despite negotiations, AirFastTickets missed the deadline for sales in May. Iata said it also suspended the agent
in Greece and Germany to “safeguard the financial interest of airlines participating in the BSP”. AirFastTickets, which continues to
trade, said it was in negotiations about payment terms and bonding, which were ongoing and confidential. Nikolaos Koklonis, founder and chief
executive, said AirFastTickets had experienced rapid international growth and had no financial problems. He insisted it did not owe suppliers and had the money, but had decided to drop its Iata accreditation from July to work with consolidators to be more competitive in the UK. Alan Bowen, AAC legal adviser, said:
“If they’ve got the money, why wouldn’t they pay it? This must be one of Iata’s biggest-ever defaults.” Bowen expressed concern at the lack of close regulation of firms based outside of the UK but trading here.
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