p5 News Oct9 7/10/09 21:39 Page 5
ttglive.com
news
In brief
■ Atol deadline sees 220 licences not renewed
Tax team set up
More than 200 companies did not renew their
Atol licence with the CAA by the October 1
deadline. Some 132 will no longer hold an Atol
and another 87 missed the deadline but could
still get a licence. No big names were in the list
despite speculation that some would struggle
to target travel
to meet bonding requirements.
■ Barbados PM in last-ditch APD talks
Lee Hayhurst.
purchase to sale fully supports
Barbados prime minister David Thompson has A TOP-LEVEL team of anti-tax the agency model they should
held talks in London with leading travel figures avoidance specialists has been do so now.”
in a last-ditch attempt to persuade the British set up by Revenue & Customs Wright said the Revenue was
government to scrap next month’s planned to investigate the travel industry. investigating if VAT was being
increase in Air Passenger Duty. Tui UK & Ireland The team is particularly focus- paid on the difference between
managing director Dermot Blastland and George ing on VAT due under the Tour the hotels’ net rate and the
Blundell-Pound from the Federation of Tour Operators’ Margin Scheme, and a final price the consumer pays,
Operators were among those at the meeting. leading expert has warned bed arguing a bed bank is liable to
banks should be urgently assess- pay UK VAT on this under Toms.
■ ‘A 2010 bounce-back is blind optimism’ ing their potential liabilities. He warned that if the
Hoseasons boss Richard Carrick said those in the Damon Wright, manager at Revenue was not successful
industry hoping travel bookings will bounce back accountants Grant Thornton, said against bed banks it could
in 2010 were suffering from “blind optimism”. bed banks should all be looking at their books in then target large online travel retailers and
Carrick said many in the travel industry have the light of the Medhotels VAT tribunal. retail partners to try to recoup the money.
underestimated a fundamental change in Last week TTG revealed that lastminute.com is The Revenue team is understood to have
consumer behaviour during the past year. facing an £11 million VAT claim from when it met several bed banks already, including
Recession breeds “clever buyers”, p6 owned Medhotels, with a four-day tribunal case Somewhere2stay and Lowcostbeds.
due to start on November 23. Somewhere2stay’s Stuart Jackson confirmed
■ Aer Lingus to axe jobs and cut pay “The agency model is under very serious the meeting but said he was confident his
Aer Lingus is to cut nearly 800 jobs and impose scrutiny by Revenue & Customs,” said Wright. company qualified as an agent.
pay reductions in an attempt to reduce costs by “All businesses working on an agency model “We obviously believe we are fine but whether
¤97 million by 2011. The airline is offering volun- need to be aware. the VAT man interprets it that way is another
tary redundancy to 500 staff but has admitted “If they have not reviewed their contracts and thing,” he said. “I think they want to prove one
there may have to be compulsory redundancies. procedures to ensure the whole process from case and then look to come after others.”
Another 187 jobs will go at head office. Staff
earning more than ¤35,000 will see their pay cut.
■ United offers flyers one-off luggage fee
Frequent flyers on United Airlines could save
money on luggage charges by stumping up
an annual fee as part of its Premier Baggage
scheme. The airline said customers could make
a one-off payment of $249 to check in two bags
every time they fly United for the next 12 months.
■ All Leisure wins award for biggest growth
All Leisure Group, which owns cruise lines Swan
Hellenic, Voyages of Discovery and Hebridean,
has won a business achievement award from law
firm Clarke Willmott for the biggest increase in
sales and pre-tax profits of any public company
TTG REPORTS FROM
in the south of England in the last year. All
Leisure increased turnover by 49.7% to £67.5
million while profits rose 91% to £9.1 million.
READY TO REPORT! TTG’s team of Roving Readers was out in force at the Travel
ttglive.com
For the latest news, reviews and comment
Convention in Barcelona this week. To find out what they made of all the speakers,
from the travel industry, visit ttglive.com sessions, supplier events and parties, go to ttglive.com/abta
09.10.2009 05
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