p4 News May 22 20/5/09 21:20 Page 4
news
22.05.2009
CAA rejects Abta’s
ABTA ELECTION.
Contest begins as
extension request
rivals rally troops
CAMPAIGNING started in earnest this week in the
first-ever election for the chairmanship at Abta,
Lee Hayhurst.
C
The original APC consultation heard with dividing lines already drawn.
THE CAA has rejected a demand for
O
the scheme could withstand a failure Advantage chief executive John McEwan
an additional six weeks’ consulta-
STO
VER
R
up to £250 million, and a recession. appears to have secured the backing of most of
tion on its proposal to treble the
Y
But now, following XL’s demise, the major tour operators, but Britaly Travel
Atol Protection Charge to £3, as the CAA estimates the Air Travel Trust owner Daniele Broccoli looks to be garnering
opposition to the move mounts. Fund, which backs Atol, will be bankrupt support among rank and file agents.
Abta chief executive Mark Tanzer wrote to by October if the increase does not go ahead. However, consortia allegiances could prove
the authority this week asking for more time The Abta spokeswoman said: “We requested a key as the larger Abta operator and agency
because, he claimed, the CAA had not supplied breakdown of the costs of XL but the informa- members will not hold sway, having just 80
information Abta had demanded. tion given does not go into enough detail. The votes of the 1,300 total.
And Trading Standards, in its response to CAA promised it would be transparent.” What could be vital is if consortia members
the consultation, warned the planned increase Abta also wanted a proposal to extend the vote along “party lines”: McEwan has written to
would see more travellers “vote with their feet” scope of Atol considered as an alternative option all Advantage and Elite members.
and buy unprotected trips. to an increase in the levy to £3. Britaly Travel is a Worldchoice member and
Andy Cooper, Abta’s development director, And it asked the CAA to provide more detail Stella UK managing director Andrew Botterill
told a select committee of MPs last week that about the £250 million insurance policy it agreed has written to Independent Options members
currently more than half of all travellers leave with struggling insurance giant AIG to back APC. endorsing Broccoli.
the UK with no protection at all. A CAA letter to Abta arrived on Wednesday Botterill and McEwan clashed last year when
An Abta spokeswoman said the letter containing some extra information, but a CAA Advantage pulled out of super-consortium Triton.
demanded to know exactly how much the XL spokesman confirmed there would be no exten-
Leisure Group collapse cost. sion to the consultation, which ends on June 12.
ADVANTAGE PLEDGE.
CONSUMER PROTECTION.
More Abta access
Cooper revives all-flights levy plan
ADVANTAGE will offer new members
not able to meet Abta’s financial
POLITICIANS evaluating future aviation policy protection provided refunds only up to a set requirements the chance to join
have been urged to reconsider placing a £1 levy financial limit. the association through the
on all flights. “Most people assume they are covered but consortium’s membership.
Abta development director Andy Cooper told if you ask them how, they do not know, so the The group, whose chief executive
MPs on the transport select committee that an only answer is extending protection to all air John McEwan is vying to become Abta’s
extension of protection to all passengers was the travellers,” he said. next chairman, joined Abta in its own right six
“only solution” to the protection mess. MPs also asked the Air Transport Users’ weeks ago.
Cooper (pictured) said consumers would Council why the government rejected the CAA’s Advantage unveiled a new form of non-Abta
accept the charge if they realised they could plan for a £1 flight levy three years ago. membership in March, at the same time as World-
not guarantee cover by Atol, travel Chief executive Simon Evans said choice revealed its own Abta rival scheme.
insurance or credit cards. airlines had lobbied strongly to But unlike Worldchoice, Advantage has
And, he said, it would be cheaper voice their view that financially insisted its scheme was never intended to be a
than fees from airlines for booking on secure carriers would effectively be direct rival to Abta. McEwan said Advantage’s
a credit card; Ryanair now charges subsidising weaker competitors. Abta membership now offered agents the chance
£5 per person for a one-way flight. But Cooper said the current for its scheme to act as a “feeder route” to full
Asked why a levy was needed system had the same problem, as membership of the association.
when credit cards provided protec- Thomas Cook and Tui provided
tion, Cooper told MPs that cards’ 40% of the CAA’s Atol income. ■ Broccoli v McEwan: Abta election special, p8
04 22.05.2009
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