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Business travel
Martin Ferguson
020 7921 8011
maferguson@ttgbusiness.com
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‘Firms neglect
White predicts
transport costs’
SMALL businesses in the UK airline collapses
are turning a blind eye to
transport costs, according
Martin Ferguson.
main aircraft manufacturers, Boeing and Airbus.
to a survey. THE TRAVEL industry must brace itself for more “In the next 12 months there will be more
The study, commissioned airline failures – potentially including a major carriers going bust and it could be some of the
by Enterprise Rent-A-Car, carrier – in the next year, according to the big names. No one is making money and there is
claimed companies had managing director of Bath Business Travel. only so long these businesses can be sustained
taken few measures to Adam White told guests at his company’s with cash savings,” he said.
bring transports costs annual Travel Industry Briefing that overcapacity White, who this year celebrated his 30th
under control despite reducing costs in other in the skies would inevitably lead to more year in the travel industry, said US airlines had
areas. airline collapses. an unfair advantage over European carriers
Some 32% of all businesses were believed to “There are thousands of empty seats flying because they could get Chapter 11 bankruptcy
have done nothing to make more efficient use of round the world at the moment,” he said. protection, which shields them from creditors.
transport options, despite more than two-thirds “The imbalance between supply and demand “The protection offered to airlines by the
(69%) claiming transport costs had increased. prevails even though there has already been a US government is unfair,” he said.
More than one in five (22%) admitted they had number of failures and some consolidation.” “Troubled carriers essentially ditch their cred-
cut costs in other areas rather than deal directly White said overcapacity was being exacerbated itors and dance back into the market. European
with rising transport costs. And 28% of respon- by airlines’ contractual obligations to the two carriers don’t have that kind of safety net.”
dents said their companies had not communi-
cated their transport policies to employees.
Enterprise director Rob Ingram (pictured) said:
“A sober and professional examination of any
company’s transport practices is likely to
highlight at least a couple of practical steps that
can be taken to cut costs.
“It’s staggering that so few small businesses
are taking the opportunity to find those
efficiencies and put them into action.
“Simple steps, such as selecting the right
transportation instead of paying mileage
reimbursement can have profound effects.”
Ingram said having a clear and well communi-
cated policy was an “absolute must”.
BSI wins blue-chip
meetings accounts
Adam White with Kathryn Wallington, Travelport’s European head of customer sales, at the BBT industry briefing in Poole
BSI has won two major contracts to provide J, D, W or Y for journeys between September 5
hotel bookings and meetings management for
Virgin gives free
and November 30. Travellers must also be
two blue chip companies. members of – or join – the Virgin Atlantic Flying
The accommodation and events specialist will
shopping vouchers
Club frequent-flyer programme.
work with energy company E.on and Cable & The airline said travel agents can use the offer
Wireless, both of which have retained travel VIRGIN Atlantic is incentivising business trav- to give corporate clients added value.
management companies to service air bookings. ellers with vouchers for John Lewis and Waitrose. Vouchers are £100 per flight for Upper Class
The Cable & Wireless deal was won in a joint Customers need to buy fully-flexible tickets to passengers, £50 for premium economy and £25
pitch with travel management firm Gray Dawes. be eligible for the vouchers, in booking classes for customers travelling in economy.
28 11.09.2009
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