p4 News Oct23 21/10/09 21:17 Page 4
news
23.10.2009
CAA ‘shoehorned’
Travelport’s Iata
injunction rejected
firms into Atol
A DISTRICT judge in Amsterdam has rejected a
request from Travelport for an injunction to pre-
vent Iata from selling GDS data without consent.
Chris Gray.
Cohen told the court he did not believe Keith’s The travel technology firm claimed the airline
THE CAA tried to “shoehorn” companies into an claim was true. regulator was in breach of European database
outdated and unworkable system of consumer Cohen was also asked whether the CAA took legislation.
protection, it was claimed in court this week. issue with Abta’s advice to members about when Iata called the decision a “major victory” and
The CAA knew the system based on Atol they required an Atol. Travel Republic is a claimed it vindicated the rights of airlines to
regulations and the European Package Directive member of Abta which, Keith told the court, profit from their data.
was unworkable but tried to bring as many issued advice to members in 2007. However, experts said the ruling was the
companies and consumers within it as possible, The CAA disagreed with the advice, and Keith “rejection of a procedural request” and not a
Stratford Magistrates Court was told. asked Cohen if objections were raised with Abta. success for the regulator.
Hugo Keith QC, representing Travel Republic Cohen said the CAA had discussions about the Travelport is taking advice and intends to take
managing director Kane Pirie, said that the CAA advice and “found it to be too simplistic” but he the case to a further hearing. General counsel
had recognised by 2004 that companies using did not know if it was raised with Abta. Tad Ostrowski said the decision was preliminary.
split contracting to sell flights and other holiday Cohen was asked why the CAA did not tell Travel Kevin Mitchell, president of the Business
components fell outside the Atol regulations. Trust Association agents that the T-Atol scheme Travel Coalition, said: “Travelport did not lose a
This was clear because it was already looking had been suspended when they came to renew case, but rather an early procedural request for
for ways to extend the regulations, he said. T-Atols this year. He said he would have liked an injunction, in lieu of a trial.”
In the meantime the CAA tried to bring them to know but there had been legal delays.
companies under Atol regardless to provide as “It’s frustrating dealing with lawyers because
much consumer protection as possible, he added. nothing seems to get done,” he said.
“It [the CAA] has endeavoured to shoehorn Travel Republic and its managing director
into the old unworkable regulation as much as Kane Pirie are charged with 19 counts each of
possible pending wholesale reform,” he said. breaching Atol regulations. All charges are
Keith was cross-examining Andy Cohen, the denied and the trial continues.
CAA’s head of Atol licensing, as the trial neared
the end of the prosecution case this week. ■ Latest court case updates on
ttglive.com
Gatwick ‘will be
T-ATOL.
He said an error was made in drafting the
TTA: Your clients
legislation which unintentionally and under a
improved by sale’
particular interpretation of the law might have
were never at risk
made it unlawful. BAA’s £1.5 billion sale of Gatwick to London City
It was decided not to renew the T-Atol airport owners GIP has raised hopes of an
franchise when the current arrangement ran out improved experience for travellers.
THE TRAVEL Trust Association has written to in May and to work on a new agreement while TTA Cheapflights global sales director Francesca
members assuring them the suspension of its members were covered by an interim agreement. Ecsery said GIP had made London City one of
T-Atol has not put customers at risk. Lewis said: “The idea had always been to leave the most efficient and customer-friendly airports
The association said details of a new agree- the TTA model as it was and that would have in the UK. But she said BAA had turned Gatwick
ment which would offer members additional been the case had APC been drafted properly. “into a shopping mall”.
cover would be revealed soon. “At no time have TTA members traded “Gatwick needs investment to provide passen-
Gary Lewis, TTA head of operations, said the unlawfully and at no time has any consumer not gers with an improved experience,” she said.
issue with the old T-Atol, described last week in had 100% protection from the TTA.” “GIP’s purchase raises the prospect of a much
the Travel Republic case as “unlawful”, came About 170 TTA members hold a T-Atol, which is improved transition through the airport.”
about due to a rewriting of the Atol regulations like a CAA rubberstamp of the protection the TTA The deal is due to be completed in December
when the £1 per passenger APC was brought in. trust system offers. subject to EU approval.
04 23.10.2009
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